News Corp. said its board has approved the plan to separate its businesses into two companies that will be publicly traded.
The two new companies will be 21st Century Fox, which will own the TV and movie businesses, and News Corp., which will own publishing assets in Australia. The separation is expected to occur on June 28.
The new movie and TV company will have three new directors who were not members of the current News Corp. board. Those new directors are Delphine Arnault, deputy general manager of Christian Dior Couture; Jacques Nasser, former CEO of Ford Motor Co.; and Robert Silberman, executive chairman of Strayer Education and former assistant secretary of the Army.
"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," said Rupert Murdoch, who will serve as chairman and CEO of the proposed 21st Century Fox, and executive chairman of the new News Corp. "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 focused management of each division."
Murdoch will be a director of 21st Century Fox, as will current News Corp. executives Chase Carey and, David DeVoe, as well as Murdoch's sons James and Lachlan.
Current News Corp. shareholders will get one share of the new News Corp. for every four shares they own. After the separation, the new News Corp. will buy back $500 million of its stock. After the publishing and Australian assets are distributed to the new company, the current News Corp. will change its name to 21st Century Fox.