Rupert Murdoch's News Corporation confirmed on Thursday it intends to separate its publishing and media and entertainment businesses into two publicly traded companies.
Murdoch said in a statement the seperation would "enable each company and its divisions to recognise their full potential."
"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."
On Tuesday, News Corp said it was "considering a restructuring to separate its business into two distinct publicly traded companies", prompting its shares to jump as much as 8% on Wall Street.
The move will see News Corp's film and television businesses - including 20th Century Fox and the Fox broadcasting network - grouped in one company.
The other company would hold all News Corp's publishing interests, such as The Wall Street Journal, The Times, The Sun, The Australian, The New York Post and publisher HarperCollins.
The entertainment arm would be by far the bigger operation, with the publishing division hindered in recent years by tough media market conditions and costs related to the UK phone hacking scandal.
A recent report by the Commons culture select committee into the phone hacking scandal claimed Rupert Murdoch was "not a fit person" to run an international company. News Corp has been trying to contain the scandal from infecting the rest of the group.
James Murdoch resigned as chairman of BSkyB in April admitting he had become its "lightning rod", just weeks after he quit as boss of News International.
Rupert Murdoch's full statement on the split:
"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.
"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."