The CEO of News Corp. (NYSE:NWS), Rupert Murdoch, has agreed to resign from several boards of the company’s subsidiaries. It’s all part of the process to split the company into the entertainment and publishing businesses. The deal is expected to be completed within a year.
While Murdoch will remain chairman of both divisions, he’ll be the CEO only of the entertainment side, the business that will probably have much more value. There has been no decision on who will run the publishing business.
The split of News Corp. will hopefully unlock more value for shareholders and allow for more focus. Yet the transaction will probably also help deal with the ongoing phone-hacking scandal that involved journalists from various newspapers of News Corp. In other words, without the involvement of Murdoch, it might be easier to get to a better settlement.