Murdoch Scraps Fox, News Corp Merger After Investor Pushback

Murdoch Scraps Fox, News Corp Merger After Investor Pushback

Back in October, and nine years after Rupert Murdoch split up his media empire in two, we learned that the 91-year-old media mogul was exploring a recombination of Fox News and the Fox broadcast business. This proposal promised to reunite the parents of Fox News and the Fox broadcast business with the print news operation that includes the Wall Street Journal, the New York Post and HarperCollins book publishing.

The recombination was a controversial one; from the very beginning activist investors such as Irenic Capital, which owns 2% of News Corp took issue with the potential merger with Fox, noting the latter’s advertising exposure and legal exposure and also undervalued News Corp assets, including its online real estate operation. A combination would create a more complex company and turn off investors, instead of boosting the company’s lagging stock price, it said in a letter to the News Corp. board, suggesting, instead, a spinoff of the digital real estate business or of Dow Jones. Irenic also said that a merger would benefit Fox far more than News Corp. and warned that the board has a fiduciary duty to explore all possible avenues to create value beyond the one suggested by its primary shareholder.

When one of the prime owners of Big Media in the world, such as Murdoch, suggests a huge "mulligan" one should wonder about what has happened? FOX News, News Corp, in a return to the world of Fox broadcasting? Why the idea is viable is one thing. Why it was desired is another. Does anyone have any ideas behind "why?"

“In withdrawing the proposal, [Rupert] Murdoch indicated . . . that a combination is not optimal for the shareholders of Fox and News Corp at this time,” the statement said.

The question I have is, why did you want to undo the split Mr. Murdoch? And if bringing the two halves of the business back together was important, why isn't it now? The shareholders apparently 'resisted' the deal...

My guess would be someone from on high told Murdoch what would happen to his holdings if he didn't follow their rules.

Congress has a way of taking companies 'under their wing' and forcing compliance; Zuckerberg and Bezos are just a couple of more obvious examples.

It takes a lot of money to fight the machine; just as the world's now second richest man.

9.21.2023

Rupert Murdoch has resigned as chairman of Fox Corp.

It was illogical of him to donate to the Biden election campaign, while serving as head of Fox News.

He has apparently chosen Biden... Democrats, as his number one priority.

www.axios.com...

a reply to: carewemust

well you know he's only about a hundred years old, well maybe early 90's it was bound to happen. lots of folks are starting to see old folks ain't always the sharpest tool in the shed. i'm in my 60's and have to sharpen my edge once a day now.

originally posted by: BernnieJGato
a reply to: carewemust

well you know he's only about a hundred years old, well maybe early 90's it was bound to happen. lots of folks are starting to see old folks ain't always the sharpest tool in the shed. i'm in my 60's and have to sharpen my edge once a day now.

Who replaces him will be important.

a reply to: carewemust

his son is,

Lachlan Murdoch, his son, will take over the chairman role at both companies, which between them operate Fox News Channel and The Wall Street Journal in the U.S. and The Times and The Sun in the U.K. Rupert, who is 92 years old, will shift into an emeritus role. The moves are expected to be approved in mid-November by the shareholders of each company. The elder Murdoch would appear to still control the family trust that governs both companies.
Rupert Murdoch Steps Down as Fox and News Corp. Chairman, To Be Succeeded By Son Lachlan