Headline-grabbing way to take the news out of News Corp – FT.com
But if Mr Murdoch is in the mood for contrarian moves, now would be a good time to consider something he has long resisted: spinning off News Corp’s newspapers.
Bankers have often pitched the idea to Mr Murdoch and his executives, explaining that the publishing assets are a drag on the valuation the Fox cable, broadcast and film studio brands would command without them.
Most analysts ascribe a fraction of its $49bn market capitalisation to publishing. Nomura estimates that newspapers’ contribution to group operating profit will fall from 11 per cent last year to 4.2 per cent by 2014. To many analysts, they seem an irrelevance or a liability.