London, June 29 (ANI): Rupert Murdoch's media conglomerate, News Corporation, has divided itself into two separate companies, after shareholders approved the split following Murdoch's decision on the move last year.
The more profitable entertainment arm of the corporation, which includes a Hollywood film studio, will be operated under the name 21st Century Fox, BBC reports.
On the other hand, the publishing arm that includes the Sun and the Times in the UK, along with the Wall Street Journal and the New York Post, will continue to run under the News Corp name.
Commenting on the development, Murdoch said that he believes the shift would open more doors for shareholders.
The publishing division of the company had made a 2.1 billion dollar loss in the previous financial year.
Analyst at the Altimeter Group in New York, Rebbeca Lieb said that the lagging revenues of the print properties were dragging down the overall profitability of News Corp, adding that there were efforts to revamp print but those endeavours were not going as fast as the shareholders might have hoped.
Following the phone-hacking scandal that surrounded British newspapers and led to the closure of the News of the World operations, this move is expected to protect the TV and film brands from the trouble.
Murdoch is likely to serve as chairman and chief executive of 21st Century Fox, along with acting as executive chairman of News Corp, while his sons James and Lachlan would also participate in the boards of both businesses.
Former editor of the Times, managing editor of the Wall Street Journal and editor-in-chief of Dow Jones, Robert Thomson, will act as the chief executive of the News Corp publishing business.
Trading will be done separately for the two companies starting 1 July in New York, under the tickers NWSA and FOXA. (ANI)