News Corp to separate publishing and entertainment businesses

Announces intent to set up different companies to enhance strategic alignment and create two category-leading companies

BestMediaInfo Bureau | Delhi | June 29, 2012

News Corporation yesterday announced in New York that it intends to pursue the separation of its publishing and entertainment businesses into two distinct publicly traded companies. Upon closing of such a transaction, shareholders would hold interests in a world-class publishing company and an unmatched global media and entertainment company.

The proposed transaction would create global category leaders in both publishing and entertainment: a publishing company, which would comprise News Corporation's newspapers and information businesses in the US, the UK and Australia, the company's leading book publishing brands, its integrated marketing services company, its digital education group, as well as its other assets in Australia; and a global media and entertainment company, which would encompass News Corporation's broadcast and worldwide cable networks, leading film and television production studios, television stations and highly successful pay TV businesses in Europe and India.

Rupert Murdoch would serve as Chairman of both companies and CEO of the media and entertainment company. Chase Carey would serve as President and COO of the media and entertainment company.

The separation is expected to be completed in approximately 12 months.

"There is much work to be done, but our board and I believe that this new corporate structure we are pursuing would accelerate News Corporation's businesses to grow to new heights, and enable each company and its divisions to recognise their full potential – and unlock even greater long-term shareholder value," said Rupert Murdoch, Chairman and CEO of News Corporation. "News Corporation's 60-year heritage of developing world-class media brands has resulted in a large and unparalleled portfolio of diversified assets. We recognise that over the years, News Corporation's broad collection of assets have become increasingly complex. We determined that creating this new structure would simplify operations and greater align strategic priorities, enabling each company to better deliver on our commitments to consumers across the globe. I am 100 per cent committed to the future of both the publishing and media and entertainment businesses and, if the board ultimately approves a separation, I would serve as Chairman of both companies."

The new global media and entertainment company that would be created through the proposed transaction would consist of News Corporation's highly-profitable cable and television assets, filmed entertainment, and direct satellite broadcasting businesses, including Fox Broadcasting, Twentieth Century Fox Film, Twentieth Century Fox Television, Fox Sports, Fox International Channels, Fox News Channel, Fox Business Network, FX, Star, the National Geographic Channels, Shine Group, Fox Television Stations, BSkyB, Sky Italia and Sky Deutschland, among others.

As a pure-play content producer and distributor, the company would build on its deep heritage in developing incredibly strong, premium content for distribution on screens of all sizes by leveraging its leading content across its entertainment and cable news verticals, as well as its unparalleled collection of regional sports networks, and the industry's leading movie and TV production and distribution company.

The new global publishing company that would be created would consist of News Corporation's current publishing businesses, as well as its book publishing, education and integrated marketing services divisions. The publishing company would have the opportunity to leverage its trusted brands for innovation and value creation across all traditional and digital platforms. It would incorporate some of the world's most successful print, digital and information services brands including Dow Jones, The Wall Street Journal, Dow Jones Newswires, HarperCollins, The New York Post, and The Daily, as well as offer the rich diversity of assets in Australia, including leading brands such as The Australian, The Herald Sun, The Daily Telegraph and The Courier Mail. In addition, the company would include The Times, The Sun, The Sunday Times, as well as News Corporation's integrated marketing services group and its ground-breaking digital education group, including Wireless Generation.

Info@BestMediaInfo.com

Info@BestMediaInfo.com