Why is Murdoch suspicious of the Fox-News Corp. merger?

Rupert Murdoch prevented the merger between News Corp (including the Wall Street Journal and the New York Post) and the Fox TV Group, which is controlled by the businessman. The money he was against changed Murdoch’s mind… Facts, figures and commentary

All is still the same: Rupert Murdoch is backing out of a proposed merger of 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 Corp CEO Lachlan Murdoch, had decided the merger was “not optimal” for shareholders.

Murdoch suggested last fall that News Corp. And Fox together, nearly a decade after the split: In 2013, shareholders approved a plan to split the media giant’s assets, which include Justthe Wall Street Journal and some Australian releases from the entertainment division. Murdoch said at the time that a split would “unlock real value for both companies and their separate assets”.

And now, according to Murdoch, this figure will not increase if they get back together.

Indeed, the skepticism of some major investors affected the project. Such as Independent Franchise Partners and Irenic Capital, who opposed the merger. A green light for the merger would require a majority vote from shareholders other than the Murdoch family, who own about 39% of News Corp’s voting shares. It owns 42% of Fox.

In addition, the proposal has been withdrawn as News Corp is in advanced talks to sell its stake in Move Inc. to CoStar, as I did. Certain the company itself.

MURDOCH WITHDRAWS PROPOSAL TO MERGE NEWS CORP AND FOX

Murdoch sent a letter to News Corp and Fox withdrawing their proposal to merge the two companies, according to a regulatory filing. He noted that he and his son, Fox Corp CEO Lachlan Murdoch, had decided the merger was “not optimal” for shareholders.

The Murdoch family owns about 40% of the vote in 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 a greater competitive position, but News Corp’s large 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 welcomed the decision not to sue, it said Reuters. “It’s 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 is Reunion for Fox & News Corp.?

However, a combination of the two companies would have consolidated leadership in the Murdoch empire and cut costs at a time of shrinking print and television audiences. news checks dow jones, editor Wall Street Journaland many other assets around the world, including HarperCollins Publishers and several newspapers in Australia and the United Kingdom. Fox Corporation. It wholly owns the Fox network, with remainder from the $71.3 billion sale of Twenty-First Century Fox to Disney in 2019 and the local TV stations and streaming service via Tubi.

Specifically, “the proposed merger would combine the assets of the controversial right-wing television networks Fox News and TMZ with News Corp’s news operations, which include newspapers and websites.” Just And sun In the United Kingdom on note and the New York Post in the United States and a handful of Australian newspapers,” he comments guardian.