News Corporation has announced that it will split into two distinct publicly-traded companies as of 28 June.
New News Corp will comprise the newspaper and publishing businesses. The more profitable entertainment side of the business, including the film and TV divisions, will be called 21st Century Fox.
Here is the full statement:
News Corporation and the new News Corporation today announced that the separation of News Corporation into two distinct publicly traded companies, 21st Century Fox and the new News Corporation, has been formally approved by the Company's Board of Directors. The Company announced appointments to the Boards of Directors of both companies, effective upon the completion of the separation, which is expected to occur on June 28, 2013.
In connection with the separation, the Company's Board has approved the distribution of all shares of the new News Corporation to the Company's stockholders in a ratio of one share of the new News Corporation for every four shares of News Corporation. Furthermore, the Board authorized a $500 million stock repurchase program for the new News Corporation following completion of the separation.
"Today's announcement is a significant step in creating two independent companies with the world's leading portfolios of publishing and media and entertainment assets," said Rupert Murdoch, who will serve as Chairman and CEO of the proposed 21st Century Fox, and Executive Chairman of the new News Corporation. "We continue to believe that the separation will unlock the true value of both companies and their distinct assets, enabling investors to benefit from the separate strategic opportunities resulting from more focused management of each division."
Mr. Murdoch continued: "The two new industry leaders created by the separation will be guided by the insights of accomplished individuals who collectively bring to each company demonstrated business acumen and a diversity of experience."
Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog
