News Corp., the parent company of Harpercollins, has officially applied to the US Security and Exchange Commission to split the company into two parts. Overall, the company is in dire straights after posting a 1.5 billion dollar loss in the last year. The plan, which was announced earlier in the year, would see the entire entertainment division split into a separate entity.
Harpercollins is seeing massive growth in its digital revenue sector, with it now accounting for 22% of the company’s total income. Having the entertainment division as its own entity would allow for stronger growth for the long-term. Robert Thomson, currently managing editor of the Wall Street Journal, would lead the newly formed company. He would be responsible for film, television, books, newspapers, and education.
“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,” said Rupert Murdoch, Chairman and CEO of 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.”