News Corp.: Hacking scandal could lead to split
News Corp.’s board is expected to approve a plan to break up the company into two entities, freeing up its profitable entertainment business from the slower-growth publishing unit. Rupert Murdoch, chairman and chief executive of the $53 billion media company, bowed to pressure to accept the split, after a phone-hacking scandal last year at one of its U.K. tabloids, said a person with knowledge of the matter. News Corp. derives at least 70 percent of its profit from television, yet its shares have long traded at a discount to those of media peers. The stock jumped 8.3 percent on June 26, when news of the possible restructuring broke.
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