Murdoch Divides Media Empire

As Rupert Murdoch mulls dividing his media empire, the media magnate has also sent words of support for Fairfax Media, his Australian rival.

Murdoch’s News Corp. has officially announced that the company has been divided in two. One would focus on entertainment and one on publishing. The move is meant to separate its controversy-ridden newspaper company from the more lucrative film and TV business.

Despite the split, the Murdoch family retains control of the two companies with Rupert Murdoch remaining as chairman of the two companies and chief executive of the entertainment company.

Despite having troubles with his empire, Murdoch offered words of support to Fairfax Media. The media billionaire said he wished Fairfax luck.

He added that Fairfax is a great company and that it would be a nightmare if it closes down because of money troubles.

Although Fairfax’s closure would mean News Ltd. would monopolize the newspaper industry in Australia, Murdoch said he doesn’t want this scenario. Murdoch said News Ltd. would become a political target if it monopolized the industry.

Murdoch, however, has belied reports that the split is caused by the phone-hacking scandal in the United Kingdom. In an interview, the media mogul said the management acted on the best interest of the company and its shareholders.

Some sources, however, said the split came after the phone-hacking scandal reached breaking point. Last May, the British parliament’s committee on culture, media and sport has issued its findings from its inquiry into the scandal.

Sources said News Corp. executives were invited by Murdoch to discuss business and the possibility of splitting the company.