Rupert Murdoch gives up bringing together News Corp and Fox Corp
A plan to reunite two parts of Rupert Murdoch’s empire has been scrapped by the media mogul.
The 91-year-old and his son Lachlan had floated the idea of bringing together News Corp, the American company behind the Wall Street Journal, Harper Collins and The Times newspaper, and Fox News owner Fox Corp.
The two companies were split in 2013 in a bid to draw a line between the struggling publishing business at the time and its entertainment division.
News Corp’s board said last year it had formed a committee to independently assess whether bringing the two companies together would be in the interests of shareholders.
Several major investors had since spoken out against the idea, suggesting it may have undervalued News Corp.
The Murdoch the family controls about 40% of the entities.
The proposed tie-up was seen, in some quarters, as potential succession planning by Murdoch Sr to consolidate power behind his son, the Fox chief, although the prospect was dismissed as “absurd” by the company last November. .
News Corp said: “The Company’s Board of Directors has received a letter from K Rupert Murdoch withdrawing the proposal to explore a potential combination of News Corp and Fox Corporation.
“In withdrawing the proposal, Mr. Murdoch has indicated that he and Lachlan K Murdoch have determined that a combination is not optimal for shareholders of News Corp and Fox at this time.”
News Corp is in talks to explore a sale of its stake in Move, the operator of the realtor.com website, to CoStar Group for about $3 billion, according to Reuters news agency.
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