Welcome to Extreme Investor Network, where we bring you the latest updates and insights into the world of business news. Today, we’re diving into the recent developments at News Corp, where activist investor Starboard Value has made a bold move to dissolve the company’s dual-class share structure, challenging the Murdoch family’s control over the media giant.
This push by Starboard Value comes in the form of a non-binding shareholder resolution, aimed at shaking up the status quo at News Corp. As of September, Rupert Murdoch held around 40% of the company’s voting stock, giving him significant control over the Wall Street Journal parent company.
Starboard Value, which owns approximately 2% of News Corp’s Class A shares, has been vocal about its desire for the company to spin out its real estate assets, including its stake in REA Group of Australia. Managing member Jeff Smith highlighted the potential value creation that could result from such a move, stating that there are easier paths to unlock value within the company.
In addition to the restructuring efforts, Murdoch is also embroiled in a legal battle to pass control of the family trust holding the News Corp stake to his son, Lachlan Murdoch. This shift in leadership comes as Rupert Murdoch, 93, stepped down as chair of the board at News Corp and Fox Corp last November, handing over the reins to his son.
News Corp shares saw a slight dip following the news of Starboard’s push, but the company remains a significant player in the media landscape. Alongside its ownership of the Wall Street Journal, News Corp also owns The Sun and publisher HarperCollins, making it a diverse and influential entity in the industry.
As we keep a close eye on the evolving story at News Corp, stay tuned to Extreme Investor Network for the latest updates and analysis on this developing situation. Our team of experts is here to provide you with unique insights and perspectives that will keep you informed and ahead of the curve in the world of business news.