New York – News Corporation has announced that it intends to pursue the separation of its publishing and media and entertainment businesses into two distinct publicly traded companies. Upon the closing of this transaction, shareholders will hold interests in both newly-formed companies.

The proposed transaction will create a global media and entertainment company, encompassing News Corporation’s broadcast and worldwide cable networks, leading film and television production studios, television stations and highly successful pay-TV businesses in Europe and India.

“We determined that creating this new structure would simplify operations and greater align strategic priorities, enabling each company to better deliver on our commitments to consumers across the globe,” said Rupert Murdoch, Chairman and CEO of News Corporation.

The new global media and entertainment company that may be formed will consist of News Corporation’s highly-profitable cable and television assets, filmed entertainment, and direct satellite broadcasting businesses, including Fox Broadcasting, Twentieth Century Fox Film, Twentieth Century Fox Television, Fox Sports, Fox International Channels, Fox News Channel, Fox Business Network, FX, Star, the National Geographic Channels, Shine Group, Fox Television Stations, BSkyB, Sky Italia and Sky Deutschland, among others.

News Corporation’s Board authorised management to explore this separation after a Board meeting yesterday.