According to News Corp, Rupert Murdoch is considering reuniting his media businesses News Corp. and Fox Corp.
Dow Jones, the publisher of the Wall Street Journal, is owned by News Corp., which announced Friday that it has created a special committee of board members to look into a potential merger. According to the company’s declaration, a merger is not guaranteed.
Fox Corp., which was left behind after Twenty-First Century Fox was sold to Disney for $71.3 billion in 2019, operates the right-wing networks Fox News and Fox Business, a rival to CNBC.
Murdoch would be able to consolidate leadership in his media empire and save expenses through a combination. The talks take place when the audience for print media and cable television is declining and readers and viewers are increasingly turning to social media, online news sources, and streaming services for their news and entertainment.
According to a memo sent to staffers that CNBC was able to receive, CEO Robert Thomson said the revelation won’t have any effect on how News Corp. is currently operating.
There can be no assurance that any transaction will arise from this evaluation, he added, “and I would want to emphasise that the special committee has not reached any determination at this time.”
Additionally, Thomson ordered staff members not to speculate on the impending transaction or make any official statements to the press, shareholders, or clients.
Additionally, the announcement comes as Dominion Voting Systems is suing Fox Corp. and Fox News for defamation in the amount of $1.6 billion. Dominion contends that Fox News and Fox Business fabricated allegations that the company’s voting devices were used to influence the outcome of the 2020 contest between Donald Trump and Joe Biden.
Fox and News Corp. have been contacted by CNBC for comment. News Corp. issued a statement on Friday stating that “neither the Company nor the Special Committee intends to comment on or disclose any developments regarding the Special Committee’s work unless and until it considers further disclosure is appropriate or warranted.”
In 2013, 91-year-old Murdoch divided Fox and News Corp. He serves as both the executive chairman of News Corp. and the chairman of Fox. Lachlan Murdoch, his son, serves as co-executive chairman of News Corp. and as CEO of Fox.
According to the Journal, the Murdoch family holds 39% of the voting stock in News Corp. and 42% of the voting stock in Fox. As of Friday’s market close, Fox’s market value was roughly $17 billion and News Corp.’s was about $9 billion. After hours, News Corp. Class A shares increased by more than 3%, while Fox’s Class A shares scarcely changed.
HarperCollins, the New York Post’s gossip section, as well as news organisations in Australia and the United Kingdom are also part of News Corp. The Fox broadcast network, which broadcasts “The Simpsons” and NFL games, is also a part of Fox’s assets.