NEW YORK (TheStreet) -- The media industry may lose another conglomerate after News Corp. (NWSA) confirmed on Tuesday a report in its Wall Street Journal that the company may split into two companies, one focused on its newspapers and publishing businesses and the other on entertainment.
While news of the split is a major development for Rupert Murdoch's media empire -- pushing its shares to a four-year high in Tuesday trading -- a decision to spin off businesses would also be a meaningful moment for the media industry.
If News Corp. were to split, Disney (DIS) would remain the only major consumer media conglomerate left intact after a generation of consolidation and M&A that created sprawling media giants in the U.S. and Europe.
The split is being considered by an embattled Murdoch, who was told by a British House of Commons Culture Committee in May that a phone-hacking scandal at the company's British newspaper unit shows he is unfit to lead the media giant, which owns Fox broadcast network, Fox News, Twentieth Century Fox and a near 40% stake in British Sky Broadcasting.
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