News Corp shareholders approve the company’s split
Ewan Miller / June 13, 2013 11:11 AM
News Corporation’s shareholders approved a plan to split the company’s cable news channels and Hollywood film studio away from its newspaper holdings last night.
Photo Credit: Edgar Zuniga Jr.
For years, investors in News Corp have bemoaned the poor performance of the company’s newspapers publishing arm, compared to its more lucrative American cable offerings.
These offerings, centred around cable channels Fox News and FX, will now form the majority of the newly independent 21st Century Fox.
The company’s newspaper offerings and Australian news channels with retain the News Corporation name.
The pressure for the company to split increased after the closure of News of the World, one of the company’s most profitable papers, following the phone hacking scandal in 2011.
Robert Thomson, the CEO of the newly formed News Corp told investors last month that the company would be ”to be relentless in our cost-cutting and in our pursuit of profits”.
Mr. Thomson wrote for the Sydney Morning Herald, before working for the Financial Times and eventually running The Times in London, which just cut 20 of its editorial positions.
Rupert Murdoch will serve as the Executive Chairman for both new companies and be the CEO of 21st Century Fox. His pay is set to rise by at least $3.7 million under the new arrangement, up to $28.3 million.
Mr. Murdoch told shareholders that “News Corporation’s size and complexity made it difficult for investors to understand and properly value our company. We’re confident the separation will unlock the true value of our assets”.
"We are on track to complete the separation on June 28 and look forward to launching two new industry leaders."
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