RUPERT Murdoch’s media giant, News Corporation, will cut its ties with the London market next month when the company splits in two.
News Corp said yesterday that it will delist from the London Stock Exchange (LSE) and that both the companies set to be created by the split will be traded on New York’s Nasdaq index with a secondary listing on the Australian Stock Exchange.
“The company today announced that it intends to cancel the listing on the official list and admission to trading on the LSE … following a determination that the company’s common stock traded on the LSE represent less than one per cent of the total trading volume of the company’s common stock globally,” it said. News Corp will delist on 28 June, the same day it becomes two companies.
The firm will split into 21st Century Fox – comprised of the Fox TV network, the 20th Century Fox film studio, a 39 per cent stake in BSkyB and other TV and film assets – and new News Corp, containing the publishing divisions of News Corp. These include the Wall Street Journal, The Times and Sunday Times and The Sun.
The move is seen as an effort to safeguard the highly profitable TV and film assets from the newspapers that are seeing both declining sales and have been tarnished by the phone hacking scandal.
Murdoch will be chief executive of 21st Century Fox and chairman of both companies.