News Corporation's board of directors has approved plans to separate its cable and broadcasting networks from its troubled publishing businesses, paving the way for it to take place on 28 June.
Under the plans approved last week, the new News Corporation will consist of the company's newspapers, including those in the US, as well as its book publisher Harper Collins, digital education arm Amplify, and Australian TV business.
Meanwhile, the other new company, 21st Century Fox, will be the home for the networks, such as Fox and National Geographic, the film studio Twentieth Century Fox Film, and pay-TV services, including its 39.1% stake in British broadcaster BSkyB.
The plans announced also protect the two companies against outside influence by allowing existing shareholders, including the Murdoch family, to buy voting shares at half their value if another party builds up a holding of more than 15%.
Rupert Murdoch, chief executive officer and chairman of News Corporation, will serve as chairman and CEO of the proposed 21st Century Fox business, and executive chairman of the new News Corporation.
The new News Corporation's CEO will be Robert Thomson, managing editor of the Wall Street Journal and a former editor of the London Times.
This article first appeared on the website of MediaWeek, the sister publication of PRWeek at Haymarket Media.