News Corporation has confirmed that it will push ahead with a plan to split the company in two.
The division will see the publishing arm split from the profitable entertainment arm which includes Fox News.
The move to form separate publishing and entertainment units was approved by the News Crop board in New York.
Local newspapers including The Australian, The Herald Sun, The Daily Telegraph and The Courier Mail will be part of the proposed new publishing arm.
Media mogul Rupert Murdoch will be chairman of both companies and chief executive of the entertainment businesses.
The move comes after News Limited chief executive Kim Williams outlined a turnaround strategy last week.
Yesterday analysts questioned if the News Corp division would through Williams’ plans into disarray.
Peter Cox, principle at Cox Media, told B&T that the split would put Williams in a “difficult position” after he bid to increase the company’s stake in TV assets.