Tom Mockridge, Chief executive of Rupert Murdoch's News Corp (NASDAQ:NWSA) (NASDAQ:NWS), will step down from his post at the end of the month. Mockridge would leave his post as an aftereffect of the Phone Hacking Scandal. The year end could also see another major top line executive James Harding- editor of Times leaving his post.
News Corp said Mr. Mockridge, who took over the position in July last year, is stepping down to “pursue outside opportunities” and Rupert Murdoch, the chairman of News Corporation, said his "decision to step down is absolutely and entirely his own".
Rupert Murdoch, chairman and chief executive of News Corp (NASDAQ:NWSA) (NASDAQ:NWS), called Mr. Mockridge “a skilled executive and a trusted friend”. After the departure of Mockridge, Robert Thomson, managing editor of The Wall Street and Editor-in–chief of Dow Jones would become Chief executive of News Corp’s entire publishing operation.
News Corp (NASDAQ:NWSA) (NASDAQ:NWS) announced a few months back that it is seeking to split into two publicly traded companies. One company will cover its television and film assets and the other would constitute its publishing entities. News Corp. said, a few months earlier that its board "authorized management to explore this separation".
The split would result into the separation of 20th Century Fox Film studio, Fox broadcast network, and Fox news channel from the newspaper and book publishing. News Corp’s (NWS) publishing unit owns newspapers, such as The Wall Street Journal, The Times of London, and The New York Post. Harper Collins is its Book publishing unit.
News Corp said that it would disengage its indisposed publishing arm from its rapid growing movie and television arm, as it seeks to limit the damage of the news of the world phone hacking scandal
After the split, tycoon and Chief Executive, Rupert Murdoch, will serve as the chairman of both companies. Along with being the chairman, Rupert Murdoch will also be the chief executive officer of the media and Entertainment Company and Chase Carey; currently the COO of News Corp (NASDAQ:NWSA) (NASDAQ:NWS) will serve as the President and chief operating officer.
There was no announcement from the company side regarding the Chief Executive Officer of the publishing company. The publishing company will be less than one- third the size of Entertainment Company.
In the recent quarter, the company reported wide gaps between the earnings of Media and publishing arm. Revenues reported from the cable network programming, filmed entertainment, television, and direct broadcast satellite TV added up to $6.2 billion. The Publishing arm reported $2 billion in revenue.
Murdoch dismissed the negative outlook for the publishing company as perceived by many analysts. He said, 'We expect the publishing company to enter the world as a standalone entity with a very strong balance sheet."