News Corp board of directors approves separation of businesses

Submitted by ITV Production on May 27, 2013

indiantelevision.com Team

MUMBAI: US media conglomerate News Corp has announced that the separation of the company into two distinct publicly traded companies, 21st Century Fox and the new News Corp has been formally approved by the company?s board of directors.

The company announced appointments to the boards of directors of both companies, effective upon the completion of the separation, which is expected to occur on 28 June.

In connection with the separation, the company?s board has approved the distribution of all shares of the new News Corp to the company?s stockholders in a ratio of one share of the new News Corp for every four shares of News Corp. Furthermore, the Board authorised a $500 million stock repurchase program for the new News Corp following completion of the separation.

Rupert Murdoch will serve as 21st Century Fox chairman, CEO and the new News Corporation executive chairman. He said, "Today?s announcement is a significant step in creating two independent companies with the world?s leading portfolios of publishing and media and entertainment assets. We continue to believe that the separation will unlock the true value of both companies and their distinct assets, enabling investors to benefit from the separate strategic opportunities resulting from more focussed management of each division."

He further stated, "The two new industry leaders created by the separation will be guided by the insights of accomplished individuals who collectively bring to each company demonstrated business acumen and a diversity of experience."

Boards of Directors Effective upon Completion of Separation

21st Century Fox: