As News Corp. Mulls Division, Insiders Appear Split Themselves
News Corporation (NASDAQ:NWS), the powerhouse media company responsible for huge papers such as The Wall Street Journal, The Times of London, The New York Post and the HarperCollins publishing company, is considering dividing itself in two as it looks to separate its publishing wing from its entertainment business.
Such an organizational shakeup would bring about huge changes for all of its subsidiaries, and the effects, or so it seems company insiders believe, could affect investor sentiment.
According to The New York Times, the split, which could potentially come in the form of a corporate spinoff, would lump The Wall Street Journal and other publications in with its publishing business, isolating it from the FOX movie studio and television networks - the most profitable arms - that have been created by Rupert Murdoch.
It is still unclear whether Murdoch will move forward wit the plan, however, the company announced on Tuesday a split was possible.
It doesn't appear company officials are too thrilled about the potential split. According to insider trading reports, director Lachlan Murdoch recently exercised his market option 170,000 at no charge, then sold those shares for $19.55 for a 100 percent profit of 3.32 million.
How do you think such a split would affect News Corp. stock?
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