Rupert Murdoch quashes proposed Fox-News Corp merger

January 24, 2023 0 Comments

Rupert Murdoch, Chairman of News Corp. and Co-Chairman of 21st Century Fox, arrives at Sun Valley Resort for the annual Allen & Company Sun Valley Conference on July 10, 2018 in Sun Valley, Idaho.

Drew Anger | Getty Images

Rupert Murdoch withdraws offer to renegotiate Fox Corporation And news corp,

Fox said Tuesday that its board had received a letter from Murdoch, its chairman, and his son and Fox CEO Lachlan Murdoch “determining that a combination would not be beneficial to the shareholders of either company at that time.” is not optimal”.

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The potential merger had faced opposition from shareholders in recent months, who did not believe the merger would reflect the true value of News Corp if it merged with Fox.

In a note to News Corp employees, Robert Thomson said Tuesday that the deal was called off, but that it would have no impact on employees, according to a memo reviewed by CNBC.

In October, the companies said they had formed a special committee to look into the deal.

Combining the two companies would lead to unified leadership across Murdoch’s empire and cut costs at a time when audiences for both print and TV media are shrinking. News Corp owns Dow Jones, the publisher of The Wall Street Journal. Fox, which survived the $71.3 billion sale of Twenty-First Century Fox to Disney in 2019, owns right-wing network Fox News and Fox Business, a CNBC competitor.

Murdoch split the companies in 2013. The Murdoch Family Trust controls approximately 40% or more of the voting rights of both companies.

—Gabriel Fonrouge of CNBC contributed to this article.

This is breaking news. Please check back for updates.

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