Rupert Murdoch withdraws proposal to merge Fox Corp and News Corp due to shareholder opposition.
Rupert Murdoch, chairman of News Corp and co-chairman of 21st Century Fox, has withdrawn the proposal to re-combine Fox Corp and News Corp. Fox said Tuesday that its board received a letter from Murdoch and his son Lachlan Murdoch that determined the combination was not optimal for the shareholders of either of the companies.
The potential merger had faced opposition from shareholders in recent months, who did not believe a merger would show the true value of News Corp. if it merged with Fox. A Fox spokesman did not immediately respond to comment. In October, the companies said they had formed a special committee to consider the deal.
A combination of the two companies would have unified leadership in Murdoch’s empire and cut costs. News Corp. owns Wall Street Journal publisher Dow Jones. Fox, with what was left over from the $71.3 billion Twenty-First Century Fox sale to Disney in 2019, owns right wing networks Fox News and Fox Business, which is a CNBC competitor.
The proposed merger of Fox Corp and News Corp has been abandoned due to opposition from shareholders. The merger would have unified leadership in Rupert Murdoch’s empire and cut costs, but it was determined that it would not be beneficial to the shareholders of either company. The companies had formed a special committee to consider the deal, but it was ultimately decided that it was not the best course of action.
News Corp. owns Wall Street Journal publisher Dow Jones and Fox owns right wing networks Fox News and Fox Business. The proposed merger would have combined these two companies, but it has been withdrawn and the future of the two companies remains uncertain.