News Corporation has disclosed details of the planned separation of News Corporation into its publishing arm and faster-growing media and entertainment side. It hopes to complete the changes within 12 months.
Murdoch, who is currently chairman and chief executive of News Corporation, will serve as chairman of both companies and chief executive of the media and entertainment arm.
Chase Carey, News Corporation’s chief operating officer, will become president and chief operating officer of the media and entertainment company.
News Corporation has yet to appoint a chief executive for the publishing arm.
The confirmation of the separation of the empire marks a climb down from Murdoch, who has previously blanched at suggestions of a break-up of the company.
Murdoch today said: "We recognize that over the years, News Corporation’s broad collection of assets have become increasingly complex.
"We’re determined that creating this new structure would simplify operations and greater align strategic priorities, enabling each company to better deliver on our commitments to consumers across the globe."
The move comes in the wake of the phone hacking scandal, which led to the closure of the News of the World and the exit of a number of key executives.
News Corporation said the separation would lead to a number of benefits, including meaning it would become more competitive and be quicker to respond to technological changes in the market.