Media conglomerate News Corporation has confirmed it is considering a restructure which would separate its business into two distinct publicly traded companies – one covering its television and entertainment businesses, and one covering its publishing interests.
The television and entertainment business includes stakes in major sports broadcasters such as the US and international Fox channels; European pay-television operators BSkyB, Sky Italia and Sky Deutschland; and Indian broadcaster Star.
News Corp confirmed the restructure was under consideration in a one-line statement yesterday.
Analysts believe the move has been prompted by falling profitability in its newspaper businesses, and also the scandals over unethical practices at its UK newspaper business News International. The move could protect the more profitable television operations from any repercussions from the News International scandals.