Activist Shareholder Shakes Up News Corp's Status Quo
Portfolio Pulse from Anusuya Lahiri
Activist shareholder Starboard Value has acquired a significant stake in News Corp (NASDAQ:NWSA) and is pushing for strategic and governance reforms. Starboard believes News Corp is undervalued due to its complex corporate structure and advocates for the spin-off of its digital real estate division, including REA Group and Realtor.com parent Move Inc. The firm is also pushing to eliminate News Corp's dual-class share structure, which grants the Murdoch family disproportionate voting rights.
October 16, 2023 | 11:29 am
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POSITIVE IMPACT
Starboard Value's acquisition of a significant stake in News Corp and push for strategic and governance reforms could potentially increase the company's market value.
Starboard Value's acquisition and push for reforms, including the spin-off of the digital real estate division and elimination of the dual-class share structure, could potentially unlock significant value for the company and enhance shareholder returns.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Previous reports indicated Chairman Rupert Murdoch weighing the merger of News Corp and Fox Corp (NASDAQ:FOXA) nearly a decade after the companies split.
While the potential merger of News Corp and Fox Corp is mentioned, there is no clear indication of how likely this is to happen or what the potential impact on Fox Corp's stock price would be.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50