By The Associated Press
News Corp. said Thursday that its board has approved plans to split into two companies. One company will operate as a newspaper and book publisher, while the other will be an entertainment company.
Here's how the split will work:
- Newspapers, book publishing and information services such as Dow Jones Newswires will be part of the publishing company. The 20th Century Fox movie studio, the Fox broadcast TV network and the Fox News channel will be part of the media and entertainment company.
- Shareholders will get a share in each company for every share of News Corp. they now own. That ratio may change by the time the plan is finalized. Both companies will trade publicly, under different stock tickers.
- Rupert Murdoch will be chairman of both companies and CEO of the media and entertainment company. The company did not name a CEO for the publishing business.
- News Corp.'s board unanimously approved the split, but it will need to approve a more formal proposal. The deal is also subject to shareholder and numerous regulatory approvals.
- News Corp. plans to hold a special meeting of its shareholders in the first half of 2013 and expects the deal to be completed in about a year.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.