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News Corp. Board Approves Separation

News Corp. said its board has approved the plan to separate its
businesses into two companies that will be publicly traded.

The two new companies will be 21st Century Fox, which will
own the TV and movie businesses, and News Corp., which will own publishing assets
in Australia. The separation is expected to occur on June 28.

The new movie and TV company will have three new directors
who were not members of the current News Corp. board. Those new directors are
Delphine Arnault, deputy general manager of Christian Dior Couture; Jacques
Nasser, former CEO of Ford Motor Co.; and Robert Silberman, executive chairman
of Strayer Education and former assistant secretary of the Army.

"Today's announcement is a significant step in creating two
independent companies with the world's leading portfolios of publishing and
media and entertainment assets," said Rupert Murdoch, who will serve as chairman
and CEO of the proposed 21st Century Fox, and executive chairman of the new
News Corp. "We continue to believe that the separation will unlock the
true value of both companies and their distinct assets, enabling investors to
benefit from the separate strategic opportunities resulting from more focused
management of each division."

Murdoch will be a director of 21st Century Fox, as will
current News Corp. executives Chase Carey and, David DeVoe, as well as
Murdoch's sons James and Lachlan.

News Corp. shareholders will get one share of the new News Corp. for every four
shares they own. After the separation, the new News Corp. will buy back $500
million of its stock. After the publishing and Australian assets are
distributed to the new company, the current News Corp. will change its name to
21st Century Fox.