News Corp could split entertainment and publishing businesses

News Corp is preparing to split its TV and entertainment businesses from its other activities, according to a report in the Wall Street Journal.

The divide would see the media giant separate companies including 20^th Century Fox and Sky Italia from its publishing activities. It would mean the 39% stake News Corp holds in UK pay TV operator BSkyB would become part of a separate company from its UK newspaper operations, which have been the subject of the phone-hacking scandal.

Citing a person familiar with the situation, the WSJ said that News Corp chief Rupert Murdoch “has recently warmed to the idea”.

News Corp’s TV and entertainment businesses are its most profitable, thought to represent around 75% of revenues and 90% of profits.