Rupert Murdoch’s News Corporation has confirmed that it will split its business into two core areas.

Murdoch will remain chairman of the two companies as he splits publishing and media. A board meeting yesterday gave the authorisation to explore the separation.

The split would see top management in the media and entertainment company oversee Murdoch’s Fox network in America and the stake in UK’s BSkyB among other Sky products throughout Europe.

News International, a subsidiary of News Corp in UK, will be joined by other News Corp publishing titles across the world including Harper Collins as the second company focuses on publishing. Murdoch has said that the move “would accelerate News Corporation’s businesses to grow to new heights”.

Rupert Murdoch would serve as Chairman of both companies and CEO of the media and entertainment company. Chase Carey would serve as President and COO of the media and entertainment company. Over the next several months, the Company will assemble management teams and Boards of Directors for both businesses.

“There is much work to be done, but our Board and I believe that this new corporate structure we are pursuing would accelerate News Corporation’s businesses to grow to new heights, and enable each company and its divisions to recognize their full potential – and unlock even greater long-term shareholder value.” – Rupert Murdoch, Chairman and CEO of News Corporation.

The move follows a turbulent year which seen him close News of the World newspaper after the phone-hacking scandal and the withdrawal of News Corp’s bid to take full control of BSkyB.

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