Following its recent reincorporation into the US, Rupert Murdoch'sNews Corp announced yesterday (Jan 10) that it would take full control of FoxEntertainment Group (FEG) in a stock swap worth approximately $6bn.

By buying back the remaining 18% of FEG, Murdoch hopes to simplifythe structure of his media empire.

A successful stock swap will give News Corp full ownership of itsUS entertainment assets including Twentieth Century Fox, Fox Network and FoxNews Channel, as well as its stake in DirecTV.

The announcement sent Fox shares up 10%. Fox Class A shareholderswill get 1.90 shares of News Corp Class A common stock for each share tendered.

News Corp spun off an 18% stake in Fox Entertainment in an IPO in1998 as a tactical ploy to let US institutional shareholders invest in aUS-based asset controlled by News Corp. At the time News Corp was incorporatedin Australia.

News Corp chiefs said the move was expected to save $3m-$7m inoperational costs. The media conglomerate controls approximately 82% of theequity and 97% of the voting power of Fox.