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Breakingviews: Split is no panacea for News Corp's woes

Tuesday, June 26, 2012 - 04:10

June 26 - Spinning off the scandal-hit publishing arm could make the movie and broadcasting businesses more profitable, but rehabilitation will be slow with Murdoch at the helm.

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But now with our commentary on bridges breaking views today's sorrow makes one aspect to news corps business one -- sort of its shortcomings. And Cyprus the last of Europe's baby bailouts with me -- -- Tom Lawson. I'm used coal it's it's a it's a great -- -- Wall Street Journal skewed going to. It was a joke was owned by a score at a national sort that is that's what this must be it. -- -- Is it the end in some ways to the Murdoch's words are the limiting the damage of one part of this business from the -- Possibly. -- basically if you if you think about a sort of what's dragging on the new school -- prize I'm insensitive or three things festival. It's a conglomerate Gannett has -- costing businesses that is publishing businesses that are really good -- terribly well. And so it. If you splitting them and half deals with that conglomerate discount feature that should. Give you more focus TV broke -- table lists which people with such -- attitude. The second problem that would Whitney's goal is the -- discount and this pre exists that the phone hacking it's that the fact that. It's controlled by someone who pays little attention to that such at Otis. And you can go and make big acquisitions of these things things that win and that. That's what this would be. That would solve this problem right dominion -- since that's right because they don't presumably will still have equal share -- in both house and presumed to have. Rupert Murdoch for a Murdoch in charge of each -- you know. You don't really -- with a medal discount it and then the third question to think it's harder to get a handle on is to what extent is doing that's. Insulate specific that he be updated -- called chromosome of -- legacy phone hacking programs in the UK and specifically. If you split the two and half. Would. There -- new school TV com be allowed to take control of participants -- who were coasting -- some are listening to me. -- there if this happens this splits. That close sets of -- about them being allowed to take. That that that don't take full control the main house being -- twelve months I think yeah I think it brings a sort of the -- the political rehabilitation experts. But on the other hand if you been sort of skeptical you would say well I -- these two companies system control what the same effect of the same family same personnel in there. We all know the way he runs these things. Even if you have to separate dissidents tees would they be really that separate and so I think. It will be a stepping into an unlucky somebody was not a dual problems and and the rehabilitation will still take him. But while okay. Cyprus loss of the bay Europe's baby bailout says Neil on Mac. Ten billion euros time it is peanuts compared to. What we've seen. Overseas famously a different story in assistant for the wrong to vote to bailout well this scenario -- yes I'm. But have no I think that's right I mean did that essentially this is the lost is the end of the road in terms of the some of the conventional. Some of paperwork for bailouts have three years which is basic food programs. Take command of the capital markets hope to recapitalize the banks since that report. And then -- hope for the best and oversee. That in terms of insulating progress had some success in terms of avoiding complete meltdown. And it's had less success in terms of insulating. Countries with problems from from the rest of the year -- and oversee. Clearly it's the case that it was it was Spain is a really taken it's it's bad enough from him. You know for its banks. But. To apply this kind of model to Spain and for it to me yeah. There's just isn't enough time to get around so so they mean everything okay is that many thanks to -- -- More generosity insight what's on US breaking -- show every day -- studies and 1730 PST. I'm -- -- resources.

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Breakingviews: Split is no panacea for News Corp's woes

Tuesday, June 26, 2012 - 04:10