News Corp, the parent company of HarperCollins, has formally applied to separate the company into two separate businesses. The filing reveals that its publishing arm would have posted a £1.28bn loss in the past fiscal year as a standalone company, Reuters reports.
The company, chaired by Rupert Murdoch, has applied to the Securities and Exchange Commission in the USA to divide itself into two parts, one containing its entertainment brands including film and TV, and the other focusing on book publishing, newspapers, information marketing services, digital real estate and education.
This division, which is currently being referred to as “new News Corp”, would have posted a loss of more than £56m in the three months leading up to 30th September this year, according to the posting.
Earlier this month, it was revealed that Robert Thomson, currently managing editor of the Wall Street Journal, would lead the newly formed company.
Murdoch said: “The filing of the Form 10 is another important step forward in the evolution of our company and in the establishment of two independent global leaders in Fox Group and the new News Corporation. Today we are pleased to provide further details on the new News Corporation – a global diversified media and information services company uniquely positioned to take advantage of exciting growth opportunities and new business models.”