Why Murdoch’s second guess about the Fox-News Corp. merger
Rupert Murdoch prevented the merger of News Corp (The Wall Street Journal, New York Post and others) and the Fox TV group controlled by the businessman. The money he was against made Murdoch change his mind… Facts, Figures and Commentary
Everything remains the same: Rupert Murdoch backs down on a proposal to merge Fox with News Corp, in a deal that would have reunited the media empire that split it nearly a decade ago.
The billionaire billionaire has sent a letter to News Corp and Fox withdrawing his proposal to merge the two companies. He noted that he and his son, Fox CEO Lachlan Murdoch, decided the combination was “not ideal” for shareholders.
Murdoch proposed combining News Corp and Fox last fall, nearly a decade after the split: In 2013, shareholders approved a plan to split the media giant’s assets, which include timesthe Wall Street Journal And some Australian publications from their entertainment section. Murdoch said at the time that a separation would “reveal the true value of both companies and their distinctive assets”.
Now this value will not increase according to Murdoch back together.
Indeed, the skepticism of some major investors weighed on the project. Such as Independent Franchise Partners and Irenic Capital who have announced their opposition to the merger. Greenlighting the merger would require majority votes from shareholders other than the Murdoch family, who own about 39 percent of News Corp. and 42 percent of Fox.
Not only that, the proposal has been withdrawn as News Corp is in advanced talks to sell its stake in Move Inc. to CoStar, as I did. has been confirmed the company itself.
MURDOCH WITHDRAWS PROPOSAL TO JOIN NEWS CORP AND FOX
Murdoch sent a letter to News Corp and Fox withdrawing his proposal to merge the two companies, according to a regulatory filing. He noted that he and his son, Fox CEO Lachlan Murdoch, decided the combination was “not ideal” for shareholders.
The Murdoch family owns about 40% of the vote in both Fox and News Corp, but any deal requires the approval of a majority of investors.
NEWS CORP’s investors were not persuaded
Combining Fox and News Corp. would have given the combined companies more scope to compete, but News Corp.’s main investors rejected the idea.
In November, Irenic Capital Management said in a letter to News Corp that it would vote against the merger, arguing that the proposed deal would likely reduce News Corp’s value, The New York Times.
The activist investment firm on Tuesday applauded the decision not to proceed, it said Reuters. “This is the right decision,” said Adam Katz, chief investment officer at iReneck. “As we look to the future, News Corp. has the opportunity to create significant value for its owners.”
WHAT THE MEETING WILL INCLUDE FOR FOX AND NEWS CORP
However, the combination of the two companies would have unified leadership in the Murdoch empire and cut costs at a time when both print and television audiences are shrinking. News Corp. Checks dow jones, publisher Wall Street Journaland many other assets around the world, including HarperCollins e Various newspapers in Australia and the United Kingdom. Fox Corp. the entire Fox network, with the remainder sold Twenty-First Century Fox reaches $71.3 billion in Disney In 2019, local TV stations and streaming service Tubi.
Specifically, “the planned merger will bring together the assets of the highly controversial right-wing TV channel Fox News and TMZ with News Corp’s news operations, which include newspapers and websites.” times And sun in the UK magazine and the New York Post In the United States, a group of Australian newspapers have been suspended guardian.
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