Murdoch splits empire into two firms

Published: Saturday June 29, 2013 MYT 9:18:00 PM

Murdoch splits empire into two firms

NEW YORK: Rupert Murdoch split his corporate empire into two parts under a long-promised plan to “unlock value” by separating high-flying entertainment operations from struggling publishing activities.

The split became effective at the close of trade in New York Friday, creating a new group called 21st Century Fox while retaining the nameNews Corp for the publishing group. Murdoch remains in charge of both.The 21st Century Fox group, which includes the Fox Hollywood studios and television entities, “launches as a unique force bringing news and entertainment to more than a billion customers every day in over 100 languages,” said Murdoch.

“Our success will continue to be rooted in a deep belief in originality and a commitment to empowering creative minds and entrepreneurs around the world.

“Our management teams are the best in the business and we will drive growth and shareholder value by expanding our existing assets and brands, while embracing new opportunities and technology.”

The new News Corp, with Murdoch in the role of chairman, includes well-known newspapers like the Wall Street Journal and New York Post in the United States; The Sunday Times of London, Sunday Telegraph and The Sun in Britain; and The Australian.

It also includes Dow Jones news agency, Fox Sports Australia and the HarperCollins publishing house.

“We are continuing a proud tradition and fashioning a prosperous future in the new News Corp,” chief executive Robert Thomson said.

“We have a valuable collection of complementary companies and our task is to make the new News more than the sum of these distinguished parts.”

Rupert Murdoch, shown in a file picture reading a copy of The Sun on Sunday newspaper, split his corporate empire into two parts Friday under a long-promised plan to “unlock value” by separating high-flying entertainment operations from struggling publishing activities.

New News Corp shares will trade under the ticker symbols “NWSA” and “NWS,” starting on Monday. Shares in 21st Century Fox will trade under the symbols “FOXA” and “FOX.”

The split of the company, with some $34 billion in revenues worldwide, is seen partly as a nod to shareholders angered by the damage and costs inflicted by a phone hacking scandal in Britain, and partly because of troubles within the group’s publishing arm.

While some analysts see the outlook for publishing as bleak, Murdoch says he remains committed to his newspaper roots.

Murdoch has spent a lifetime building News Corp from a single Australian newspaper he inherited.

As his empire was being built through a series of mergers and acquisitions, Murdoch also went through a series of unions and breakups in his personal life.

Earlier this month, Murdoch filed papers to divorce his third wife Wendi Deng, citing an “irretrievably” broken marriage to a woman 38 years his junior.

Deng was perhaps best known for a 2011 incident in which she leapt to defend her husband by striking a pie-wielding protester, prompting headlines calling her a “tiger wife.”

The divorce will not affect the way in which the media empire is run, as Deng does not have stock or voting rights in News Corp, sources familiar with the company said. – AFP

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: