News Corp. is expected to announce plans to split itself into two on Thursday, CNBC reports.
It will keep its profitable film and TV groups together while putting its less lucrative publishing assets in another company.
Frankly, we’re not sure who will want to invest in the publishing company which will be made up of newspapers. One analyst pegged that business as being worth 7% of News Corp.’s overall value.
Goldman Sachs is News Corp.’s banker on the deal, according to Bloomberg.
CNBC says the split will take a year to complete. When it’s done, it will be a huge shift in the media landscape.
Investors have been begging Rupert Murdoch to split up his empire for a long time now. He’s been reluctant, but it looks like the hacking scandal has forced his hand.
In order for the film and TV business to pursue certain deals, News Corp needed to free it from the baggage of the publishing group.
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