Newspapers may be Rupert Murdoch’s first love, but in the planned breakup of his empire he is acknowledging the news business has failed to keep pace with his high-flying entertainment assets.
The split of Murdoch’s massive News Corp unveiled Thursday would create separate companies for the huge entertainment division and the struggling publishing business.
The publishing arm has some of the most prestigious names in the industry, including The Wall Street Journal and Times of London, but has been hurt by a move away from print. It also took a hit from a phone hacking scandal in Britain, which led to the closure of News of The World.
“This move is a ratification that News Corp’s two businesses — entertainment and news — have radically different trajectories, and that those trajectories are only widening,” said Ken Doctor, an analyst with the research firm Outsell.
Some analysts say that the news operations are an “albatross” that drag down the value of the empire.
A simple way to view this, bye, bye newspapers.