News Corporation mulling split


News CorporationAccording to reports, News Corporation honcho Rupert Murdoch loves newsprint; some investors not so much, particularly in the wake of the UK hacking scandal. The solution: Diverge into two companies.

This is not a new idea – some analysts and shareholders have been advocating such a move for some time – but the News of the World hacking scandal has added volume to the calls for a split.

The broadcast/cable/entertainment side of the company is said to account for 70% of its total value. It would operate as a unit separate from the company’s newspapers and publishing assets, located in the US, UK and Australia.

Some have advocating spinning off the publishing assets outright – this move wouldn’t go that far. But it would insulate the entertainment side of the company and its higher growth potential from the difficult times being faced on the print side which have only been exacerbated by the firm’s legal woes in Britain.

At this point, it is only a matter being considered; nonetheless, word that the idea on the table is already having a positive impact on the company’s stock price.