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.