Rupert Murdoch eyes recombination of Fox and News Corp: Report
Rupert Murdoch is reportedly considering a recombination of Fox (FOXA) and News Corp (NWSA).
According to Murdoch belonging The Wall Street Journal (WSJ), the 91-year-old businessman is currently in preliminary talks to join the two entities of his media empire, which previously parted ways in 2013. Disney acquired the bulk of Fox’s entertainment assets in a $71 billion contract back in 2019.
The WSJ report added that special board committees have been created by the two companies to study a possible deal and assess potential financial terms.
Fox Corp includes television juggernaut Fox News and broadcast network Fox, as well as streaming service Tubi and other local television stations.
News Corp, meanwhile, is the publishing arm of Murdoch’s media empire and serves as the parent company of HarperCollins and Dow Jones, the publisher of the Wall Street Journal.
According to SEC filings, the Murdoch Family Trust controls an approximately 39% voting stake in News Corp and an approximately 42% voting stake in Fox Corp.
Media mergers and acquisitions are nothing new, with big companies like Paramount Global (PARA) and Warner Bros. Discovery (WBD) having recently completed their own respective consolidations, while Amazon (AMZN) completed its $8.5 billion acquisition from MGM studios in March.
Lack of cash and increased competition have served as catalysts for recent activity with many looking for new revenue drivers and monetization opportunities.
Shares of News Corp, which have fallen more than 30% year-to-date, rose about 5% in after-hours trading following the news.
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