News Corp. Selling Stake at NZ Sky

News Corp. has announced that it is selling some 44 percent of its stake in Sky Network Television, a pay TV provider in New Zealand.

The company said the move is part of its effort in cleaning up its investment portfolio and as preparation for splitting the business into publishing and broadcast.

Sky placed its shares in a trading halt while investment partners were managing the sale. Craigs Investment Partners and Deutsche Bank are managing the sale in behalf of News Corp. The sale is worth some $700 million share parcel.

Chase Carey, the chief operating officer of News Corp., said its investment with Sky has been outstanding. He added that the two companies have enjoyed a great working relationship. He also expressed confidence that the harmonious relationship would continue despite the sale.

The Sky spokesperson echoed the same sentiment, saying the two companies have worked together even before News Corp. became a shareholder in Sky. The spokeswoman said she expects the sale would not have any impact on their content deals.

News Corp. has always been vocal about splitting the business. Executive James Murdoch said a simpler business model would be beneficial to the company.