Rupert Murdoch’s News Corp. said yesterday it was “considering a restructuring” that would split off its larger entertainment division from the struggling publishing businesses.

Two distinct publicly traded companies

The New York-based company confirmed reports earlier in the day and said the move would “separate its business into two distinct publicly traded companies”.

The statement followed a report in the Wall Street Journal, one of the units of the global media-entertainment conglomerate, on the possible move.

News Corp. shares jumped 6.3 per cent in New York to $21.56 (€17.26) on the news.

Analysts said the move would separate the profitable film and television businesses from the news and media operations which have been tainted by the phone-hacking scandal in Britain.

The carve-out would likely lead to one unit including 20th Century Fox movie studio, Fox broadcast network and Fox News channel, competing more directly against Disney, Time Warner and Comcast, which controls NBC Universal.

The company’s publishing assets include The Wall Street Journal, New York Post, the Times of London and The Australian newspaper, as well as the Harper Collins book publishing house.

The Wall Street Journal report said the plan, if implemented, was not expected to change the Murdoch clan’s effective control of any of the businesses.