Rupert Murdoch’s planned split of his News Corp. empire into two different companies cleared another hurdle on Tuesday after the shareholders approved of the plan.
The plan has News Corp. being split in half. A new company called 21st Century Fox will include the entertainment components, including the 20th Century Fox movie studio and 20th Century Fox TV. The News Corp. name will live on as the company with Murdoch’s publishing interests around the world.
According to Deadline, The Wall Street Journal did confirm today that the shareholders approved the plan during a New York meeting. This means that the June 28 separation will still take place as planned and the companies will begin trading separately on July 1. The shareholders will get one share for every four shares of the old News Corp. that they have now.
“We are pleased that the proposals have been approved by an overwhelming majority of the outstanding shares, and that our shareholders clearly recognize the anticipated benefits of the separation,” Murdoch said in a statement. He will become the CEO of 21st Century Fox and the executive chairman for News Corp.
The Wrap notes that the plan was first announced last summer, partly as an effort to save the much more valuable entertainment arm from the bad press the publishing arm has been under since the News of the World phone hacking scandal broke.
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