RUPERT Murdoch's News Corporation has confirmed it is considering splitting up the business.
The separation would see the group's 39% stake in broadcasting giant BSkyB separately listed from the embattled UK newspaper arm, News International.
In a short statement, News Corp said it was "considering a restructuring to separate its business into two distinct publicly traded companies".
Shares in News Corp jumped as much as 8% on Wall Street as investors cheered confirmation of the much-anticipated plans.
In London, BSkyB shares traded 3% higher amid market speculation the split will mean News Corp revives its bid for full control of BSkyB.
It had to scrap a deal to buy the remaining stake of BSkyB in the wake of the phone-hacking scandal, which led to the closure of the group's News of the World tabloid and prompted the Leveson Inquiry.
The restructuring could effectively quarantine the scandal-hit papers from the rest of the organisation and pave the way for the BSkyB deal's resurrection.
News Corp's move would see film and television businesses – including 20th Century Fox and Fox broadcasting network – grouped together, while the other company would hold all News Corp's publishing interests, such as The Wall Street Journal, The Times, The Sun, The Australian, The New York Post and publisher HarperCollins.
The entertainment arm would be by far the bigger operation, with the publishing division hindered by tough market conditions and exceptional costs.
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