After years of being criticized by investors for his love of newspapers, News Corp. Chairman Rupert Murdoch is now a step closer to cleaving off his declining publishing business.
Shareholders voted to approve the breakup plan at a special meeting in New York, where the company is based, Murdoch said Tuesday. The publishing group will inherit the News Corp. name, while the entertainment unit will be called 21st Century Fox after the June 28 split. Murdoch holds the plurality of votes through his family's trust, with 39 percent of Class B voting shares, helping ensure passage of the proposal.
"News Corp.'s size and complexity made it difficult for investors to understand and properly value our company," Murdoch said at the meeting. "We're confident the separation will unlock the true value of our assets."