By Activist investor Starboard Value has recently acquired a significant stake in Rupert Murdoch’s News Corp, per a report on Sunday. According to The Wall Street Journal, Starboard believes that the media giant is undervalued and is planning to advocate for strategic and governance changes within the company.
Seeking Strategic and Governance Changes
Starboard’s proposed changes include spinning off News Corp’s online real-estate unit, which includes Realtor.com parent Move Inc. Additionally, they are pushing for the elimination of the company’s current dual-class share structure, which grants the Murdoch family greater voting power. However, successfully implementing these changes may prove challenging as the Murdoch family already possesses approximately 40% of the voting stake in News Corp.
Rupert Murdoch’s Succession Plan
It is worth noting that last month, Rupert Murdoch announced his resignation as chair of both News Corp and Fox Corp, effective from the end of November. This move will make his oldest son, Lachlan, the sole chair of News Corp, with Robert Thomson serving as Chief Executive.
Positive Performance
News Corp’s Class A shares have seen a year-to-date increase of around 15%, while Class B shares have risen approximately 18% in 2023. In comparison, the S&P 500 has gained about 13% during the same timeframe.
Comments