News Corp to take $1.4 billion write down this quarter
Zee Media Bureau
New Delhi: News Corp has said that it will write down the value of its assets by up to USD 1.4 billion, as the company prepares to split its entertainment businesses from the publishing division
The charge will be taken in the quarter ending June 30 and could effectively wipe out News Corp's profit. Analysts were expecting News Corp to report a pretax profit of USD 1.4 billion, a news wire has reported.
Rupert Murdoch will be Chairman of both companies and CEO of the media and entertainment company. Robert Thomson, former Managing Editor of The Wall Street Journal, will become CEO of the publishing company. Murdoch will end up controlling both companies through the nearly 40 per cent of Class B voting shares he controls through a family trust. Murdoch’s compensation package for the two companies combined could rise by as much as 15 per cent if financial targets are met.
News Corp.’s board unanimously approved the split, but it will need to approve a more formal proposal. The deal is also subject to shareholder and numerous regulatory approvals.
News Corp. plans to hold a special meeting of its shareholders on June 11 in New York and expects the deal to be completed in mid-2013.
With Agency Inputs