This could be very interesting: News Corp. is considering splitting its publishing and entertainment divisions into two separate businesses, according to the Wall Street Journal (a News Corp. publication). The split would create an entertainment company including 20th Century Fox, the Fox and Fox News stations and its other film and television endeavors, while also creating a smaller publishing business built around HarperCollins and News Corp.’s various newspapers.
The logic behind such a move is obvious. News Corp. is a phenomenally successful entertainment company, with lots of success in film and on television (financial successes, at least); it is also a company that happens to publish newspapers, which are a relative financial drag. Rupert Murdoch famously loves newspapers and loves publishing them, and the Journal reports that he is finally pondering a split after opposing such a move for years.
One has to wonder (I’m wondering, specifically, I am the one who is wondering) if his sudden interest in this stems from the phone-hacking scandal, which centered on News Corp.’s publications and its management of the same. I’m also very curious if this story is being leaked just to gauge how investors feel about the idea now that the dust has settled somewhat on the phone-hacking. If so, I wonder how they will react and what will happen next.