News Corp., parent company of news providers like Fox News and The New York Post, announced on Thursday that it will break up its operations into two distinct companies. One firm will handle all of News Corp.’s entertainment while another firm will manage all the company’s publishing operations.
News Corp. is expected to officially announce the separation on Thursday. Sources within News Corp. confirmed to news outlets late last night that the company’s board has officially approved the measure.
News Corp.’s entertainment services like 20th Century Fox and the Fox News Channel will continue to be operated by one firm while another operates newspaper assets like The Wall Street Journal and the Times of London as well as book publishers like Harper Collins.
News Corp. Chairman and Chief Executive Rupert Murdoch spoke after its board approved the measure on Wednesday night in New York along with a number of News Corp’s financial advisors.
News Corp.’s publically traded shares have jumped 11 percent since the company announced it was considering the split on Tuesday. The move is expected to be the biggest corporate shakeup since Murdoch founded the firm more than 30 years ago. The process of bifurcation is expected to take approximately one year.
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