News Corp confirms two-way split

Global media giant, News Corporation said yesterday that the company's board has approved a plan to split its media business into two distinct publishing and media entertainment companies in order to enhance the strategic alignment and increase its operational flexibility.

News Corp, controlled by media baron Rupert Murdoch is one of the world's largest media companies with assets of approximately $61 billion and revenue of $34 billion in 2011. The splitting of Murdoch's empire is expected to create two world-class publicly traded companies in entertainment and publishing sectors.

New York-based News Corp's operations are spread over the US, Europe, Australia, Asia and Latin America.

News Corp's plans of split was reported on Tuesday by the media citing people familiar with the situation. (See: Rupert Murdoch's News Corp weighing two-way split plan: report) 

Regarding the split Murdoch said, "There is much work to be done, but our board and I believe that this new corporate structure we are pursuing would accelerate News Corporation's businesses to grow to new heights, and enable each company and its divisions to recognise their full potential – and unlock even greater long-term shareholder value."

Murdoch will serve as the chairman of both the companies and the CEO of the media and entertainment company, while Chase Carey will become its president and chief operating officer.