News Corp sells digital education brand Amplify

News Corp. says it has laid off about 500 of the 900 employees at its money-losing Amplify educational unit and sold it to Amplify managers and private investors for an undisclosed amount. These buyers include familiar faces from the company’s existing leadership, notably Larry Berger and Joel Klein, both of whom were the face of the Amplify.

Rupert Murdoch’s News Corp. had seen education as an engine for growth as profit shrank in other parts of the company.

As a result of the sale, beginning in the first quarter of fiscal 2016, News Corp will reflect the results of its Digital Education segment as discontinued operations. He had previously co-founded Wireless Generation, the education data and analytics company that News Corp. purchased for $390 million in 2010.

Klein, a close ally of Murdoch’s who was formerly the chancellor, of the New York City public school system, is stepping down as Amplify’s CEO, the email said, but will continue to serve on Amplify’s board. The unit makes up only about 1 percent of revenue at the company, which also publishes newspapers, including the Wall Street Journal.