The News Corp. who owns the Dow Jones and Company which publishes the Wall Street Journal and Barron’s weekly business magazine among many others in the U.S. is considering a company breakup into two entities. It would separate the media giant’s underperforming newspaper business from its lucrative entertainment assets. Approximately 70 percent of the company profits come from television. The new newspaper business could include The Wall Street Journal, The Times of London, The New York Post, and as many as other 175 newspapers worldwide. These publishing enterprises contributed $8.8 billion in revenue in 2011. On the other hand, the much more lucrative entertainment enterprises contributed $23.5 billion in revenue in 2011 to the media empire.
Rupert Murdoch who is the Chairman and CEO of the News Corp. built the company from a single newspaper in Adelaide, Australia into a billion dollar multi-media giant. The Murdoch family owns 40 percent of the empire and will continue to handle both parts once separated.
Rupert Murdoch’s media empire is valued at about $53 billion. A recent phone-hacking scandal at its News of the World British tabloid caused it to close the publication. It is faced with enormous financial strain and decline in print advertising revenue.