MUMBAI: The Church of England, the mother church of the worldwide Anglican Communion, has decided to give up its stake in the Rupert Murdoch-owned News Corp due to ethical concerns arising out of phone-hacking scandal.

The church said it had sold its $2.9 million because it was not convinced by News Corp‘s efforts to reform its corporate governance.

The Church hold assets worth more than ?8 billion through its three national investment bodies, the Church Commissioners for England, the Church of England Pensions Board, and the CBF Church of England Funds.

"The Church of England first raised concerns with the board of News Corporation in the aftermath of the phone-hacking allegations that surfaced in July 2011," the Church of England said in a statement.

"After a year of dialogue between the company and the EIAG (the Church‘s Ethical Investment Advisory Group), the Church of England was not satisfied that News Corporation had shown, or is likely in the immediate future to show, a commitment to implement necessary corporate governance reform."

As per church investment guidelines it can‘t buy stakes in companies that provide military products or services, pornography, alcohol, gambling, tobacco, human embryonic cloning or high-interest-rate lending.

Meanwhile, the Scotland Yard has arrested a journalist and a police officer as part of a probe in the phone-hacking controversy on suspicion of conspiracy to corrupt and conspiracy to cause misconduct in a public office.

The phone hacking scandal relates to controversy at the now defunct News of the World and Sun news papers wherein journalists indulged in phone hacking, police bribery, and exercising improper influence in the pursuit of publishing stories.

MUMBAI: After son James Murdoch, media baron Rupert Murdoch has resigned as director of his U.K. media group News International, NewsCorp Investments, and Times Newspaper Holdings, a move that has been described as corporate house cleaning process.

The BBC said that he has also resigned from boards of a number of subsidiaries in America, Australia and India, where it runs the Star TV network.

The move comes in the backdrop of News Corp?s announcement to separate the profitable film and television business from the publishing business, which has been a drag on the media conglomerates balance sheet.

News International, which publishes The Times, The Sunday Times and The Sun newspapers, has become a headache for News Corp due to its exposure to the phone hacking scandal, which led to the closure of News of the World tabloid besides arrest of company official and millions of pounds in damages to the victims.

More than that, the scandal has besmirched the image of Murdoch?s and prevented News Corp from making a complete takeover of BSkyB in which it holds 39 per cent.

Incidentally, in February this year James Murdoch had to quit the the boards of News Corp?s newspaper companies as well as BSkyB board due to the scandal. The Junior Murdoch has since moved to US as deputy COO of News Corp.

"I wanted to let you know that Rupert Murdoch has resigned as director of a number of companies, including NI Group Limited, known to most of you as News International, and Times Newspapers Holdings Limited," News International head Tom Mockridge reportedly said in an email.

"As you may be aware, Rupert resigned from a number of UK boards, including News Group Newspapers and Times Newspapers Limited, some time ago. He has also stepped down from more than a dozen boards of companies with interests in the US, Australia and India."

The move has fuelled speculation that Murdoch is looking to sell off his UK publishing business in order to rid himself of the scandal menace.

MUMBAI: Elizabeth Murdoch, the daughter of News Corp. chairman and CEO Rupert Murdoch, is stepping down as CEO of Shine, a move seen as an intent by the senior Murdoch to assign her a bigger role at News Corp.

Alex Mahon will step in as Shine Group CEO from September while Elisabeth will remain as its chairman.

Elizabeth said, ?As Shine further diversifies across genres, geographies and platforms, I believe that the continued growth of the company requires the chairman and CEO roles to be distinct and separate. Alex has earned this new leadership position in recognition of her substantial contribution to Shine?s growth from a single U.K.-based production company a decade ago to the global business we run today."

The division of duties will focus Alex?s attention on managing the operational business, while allowing Elizabeth to concentrate on identifying future strategic opportunities.

MUMBAI: Facing flak for phone hacking scandal, media baron Rupert Murdoch said Britian doesn‘t appeal him anymore. Instead, the News Corp chairman is bullish on United States.

Murdoch is no longer interested in acquiring the profitable pay TV business British Sky Broadcasting, in which his company holds 39 per cent.

Pertinently, Murdoch has for a long time been pursuing the take over of BSkyB but the phone hacking scandal which engulfed at its British tabloids last year forced the company to withdraw the $12 billion bid to buy BSkyB.

?I think we have moved on in our own thinking from that,? Murdoch said to Fox Business. ?There were billions and billions of dollars and if Britain didn?t want them, we have good places to put them here. I am much more bullish on America than I am about England.?

Murdoch brushed aside suggestions that his decision had more to do with the hacking scandal, saying his confidence in the United States has a lot to do with its leadership. He also believes that Europe is going to have a long ?semi-recession, if not a real recession".

MUMBAI: News Corp?s success has come from speed, flexibility and creativity in responding to changing markets, in combination with the commitment to serving customers? needs.

News Corp chairman, CEO Rupert Murdoch made these remarks in a memo to employees on the occasion of the company deciding to split into two units.

"I believe our leadership is born out of a spirit of innovation. We have never accepted the status quo. We have always been driven by the belief that we can do better ? deliver a better product for our audiences and provide better performing businesses for our shareholders."

He noted that the publishing businesses are greatly undervalued by the skeptics. The aim of the split which he called a transformation is to unleash their real potential, and be able to better articulate the true value they hold for shareholders.

The drive is to create the most ambitious, well-capitalised and highly motivated publishing company in the world, consisting of the largest collection of news and publishing brands, as well as the digital education group.

"We will also work to create the world?s top media and entertainment company, encompassing our premier broadcast and cable networks, leading film and television production studios and highly successful pay-TV businesses. Much of our foundation already exists ? because of you. We have the

creative minds. We have the assets. We have the brands. But we must realign and reorganise in this moment of opportunity so that we can heighten our focus and be faster, more nimble, and more adaptable to change," Murdoch wrote.

When this journey began 60 years ago in Adelaide, the commitment was to provide great journalism, while also entertaining our consumers.

"In news, information, data, literature, and digital content, no company has devoted the resources, the passion, or enjoyed the success we have. That will not change. The most important guarantee to free societies, free markets and free minds is free speech. Knowledge has changed the course of history in every society, and we believe that being a creator and distributor of information is not just the right thing to do, it?s good business," Murdoch added.

The failure of other publishing companies to embrace the future has itself created opportunities for News Corp around the world. The publishing company will deliver on the promise of a well-informed society as it aggressively pursues growth across borders and new global platforms.

He further noted that on the media and entertainment side, the company has a reputation for inspiring and entertaining millions of imaginations every day. "We have a history of empowering truly visionary, creative talent to take chances that have redefined the landscape again and again. Today, our creative content businesses have never been stronger. Our distribution assets, globally, are on full throttle. These businesses, at the core of an independent media and
entertainment entity, will innovate and grow even faster."

He explained that the most valuable commodities in the world today are information, analysis and education, with infinite potential through the growth of technology and digital platforms to accelerate the improvement of world living standards.

"Today there are 30 million tablets in use in the U.S. and 75 million worldwide. In five years? time, there will be at least 75 million tablets in the U.S. and 375 million in the world. Smartphones will get far smarter and grow rapidly over the next 5 years, from 120 million active phones to 225 million in the U.S., and from 835 million to 1.7 billion in the world. These technologies will permeate all parts of life ? including education ? and it is my firm belief that these two companies will be best positioned to compete in this rapidly evolving global economy and distribute our premium content on these platforms.

"Over the years, I have become accustomed to the noise of critics and naysayers?and pretty thick-skinned! Remember what they said when we started the Fox Network, Sky, Fox News and The Sun? These experiences have made me more resilient. And they should you, as well. And time and time again, we persevered, creating new businesses, new products, telling new stories, informing and educating the public in new ways ? and giving jobs to thousands more people.

"I am extremely excited by this big change. It is a testimony to our entrepreneurial spirit and determination to educate, inspire and entertain millions of families across the globe."

Murdoch will personally be leading the creation of the new companies and will serve as Chairman of both organisations and as CEO of the media and entertainment company. Chase Carey will continue to partner with Murdoch on leading the media and entertainment business, by serving as President and COO.

MUMBAI: Decks have been cleared for Rupert Murdoch?s global media empire to be split into two companies with the high growth media & entertainment business being separated from the sluggish publishing business.

News Corporation?s Board authorised management to explore this separation after a Board meeting yesterday.

The move, aimed at increasing operational flexibility, will see creation of two distinctly public trading companies which would allow News Corp shareholders to hold interests in a publishing company, consisting of publishing assets and a new digital education group, and a global media and entertainment company.

Upon closing of the proposed transaction, Rupert Murdoch would serve as chairman of both companies and CEO of the media and entertainment company. Chase Carey would serve as President and COO of the media and entertainment company.

Over the next several months, the company will assemble management teams and Boards of Directors for both businesses, News Corp said in a statement.

Murdoch?s decision not to head the new publishing business has sparked speculation that he was setting the stage for the return of his eldest son Lachlan Murdoch to the company.

The separation is expected to be completed in approximately 12 months. Management is developing detailed plans for the Board?s further consideration and final approval. To execute the transaction requires further work on structure, management, governance, and other significant matters.

After receiving final approval of the Board of Directors, News Corporation will convene a special shareholder meeting to consider the transaction. This meeting is not expected to take place until the first half of calendar 2013.

"There is much work to be done, but our Board and I believe that this new corporate structure we are pursuing would accelerate News Corporation?s businesses to grow to new heights, and enable each company and its divisions to recognize their full potential - and unlock even greater long-term shareholder value," said News Corporation Chairman and CEO Rupert Murdoch.

"News Corporation?s 60-year heritage of developing world-class media brands has resulted in a large and unparalleled portfolio of diversified assets. We recognize that over the years, News Corporation?s broad collection of assets have become increasingly complex. We determined that creating this new structure would simplify operations and greater align strategic priorities, enabling each company to better deliver on our commitments to consumers across the globe.

I am 100 percent committed to the future of both the publishing and media and entertainment businesses and, if the Board ultimately approves a separation, I would serve as Chairman of both companies."

The proposed transaction would create global category leaders in both publishing and entertainment: a publishing company, which would consist of News Corporation?s newspapers and information businesses in the U.S., U.K., and Australia, the company?s leading book publishing brands, its integrated marketing services company, its digital education group, as well as its other assets in Australia; and a global media and entertainment company, which would encompass News Corporation?s broadcast and worldwide cable networks, leading film and television production studios, television stations and highly successful pay-TV businesses in Europe and India.

The new global media and entertainment company would consist of News Corporation?s highly-profitable cable and television assets, filmed entertainment, and direct satellite broadcasting businesses, including Fox Broadcasting, Twentieth Century Fox Film, Twentieth Century Fox Television, Fox Sports, Fox International Channels, Fox News Channel, Fox Business Network, FX, Star, the National Geographic Channels, Shine Group, Fox Television Stations, BSkyB, Sky Italia and Sky Deutschland.

The publishing company includes brands like Dow Jones, The Wall Street Journal, Dow Jones Newswires, HarperCollins, The New York Post, and The Daily, as well as offer the rich diversity of assets in Australia, including leading brands such as The Australian, The Herald Sun, The Daily Telegraph and The Courier Mail. In addition, the Company would include The Times, The Sun, The Sunday Times, as well as News Corporation?s integrated marketing services group and its ground-breaking digital education group, including Wireless Generation.

Upon closing of the proposed transaction, News Corporation?s shareholders would receive one share of common stock in the new company for each same class News Corporation share currently held. Following the separation, each company would maintain two classes of common stock: Class A Common and Class B Common Voting Shares.

In addition to shareholder approval, the completion of the separation will also be subject to receipt of regulatory approvals, opinions from tax counsel and favorable rulings from certain tax jurisdictions regarding the tax-free nature of the transaction to the Company and to its shareholders, further due diligence as appropriate, and the filing and effectiveness of appropriate filings with the U.S. Securities and Exchange Commission.