Murdoch Sees Unlocked Shareholder Value in Split

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June 28 (Bloomberg) -- Bloomberg's Sara Eisen and Scarlet Fu examine the split of News Corp. into two separate entities for publishing and entertainment as the change goes into effect today. They speak on Bloomberg Television's "Bloomberg Surveillance."

Breaks into two.

Entertainment and publishing.

Murdoch said it will unlock value for shareholders, one business focused on tv and film and the other on newspaper and publishing.

You have been looking into the research notes leading up to the widely anticipated events.

The other thing you need to keep in mind is that it insulates more valuable tv and film entertainment business from all of the problems with the phone hacking scandal.

News corp.

Has paid out about 389 million dollars in legal costs from the phone hot -- phone hacking scandal and it will protect that more profitable side.

$9 billion is the valuation on the publishing business which will be called news corp., traded under nwsa starting monday, and then the entertainment business, 60 $5 billion, seven times the valuation of the publishing business.

It is a big, big disparity.

You mentioned the hacking scandal as part of the reason.

I wonder if it is part of a broader trend.

You see media companies in the headlines every day, consolidating, getting of businesses they don't need.

And pressure once -- pressure on sony to do the same.

And time warner wants to spin off the magazine portion.

This is all part of that effort to slim down a little bit.

And a lot of people are saying that this could potentially lead to acquisition later on.

For instance, the new 21st century fox business could make a new bid for bskyb.

Brad looking at the media business and separating the bs

This text has been automatically generated. It may not be 100% accurate.


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