The announcement comes as News Corp. Chairman-CEO Rupert Murdoch seems close to concluding a deal to acquire Dow Jones, publisher of The Wall Street Journal.
The Bancroft family, which controls the company, has met with other potential investors, including supermarket mogul Ron Burkle and Intermix Media owner Brad Greenspan, but the nature of those proposals is unknown.
Mr. Murdoch has offered $5 billion to buy Dow Jones, and told Reuters on June 27 he expected the Bancrofts to agree to a sale within two to three weeks "if at all." Mr. Murdoch has made it clear that he sees owning The Wall Street Journal as a way to bring instant credibility to his start-up TV network. He is also eager to enter the online-business-news market.
The channel will be headed by Mr. Cavuto, who will oversee the business-news coverage, and Fox News exec VP Kevin Magee, who will head the channel's daily operations. Both will still report to Fox News Chairman-CEO Roger Ailes, who will also preside over Fox Business Network.
Mr. Cavuto said in a statement, "I'm extremely excited to be part of such a dynamic venture, and I look forward to building on the success of our existing top five business programs in cable news."