Rupert Murdoch Exploring the Possibility to Merge Fox and News Corp.
According to people “familiar with the situation,” the 91-year-old media mogul is exploring the possibility of merging Fox Corp. and News Corp.
The Wall Street Journal reports that while discussions are in its early stages, special board committees have just been established by both companies to study a possible deal and evaluate possible financial terms.
Things are brewing…
The action would bring Fox News and The Wall Street Journal together again. Like one big happy family.
On Friday afternoon News Corp said that its board, at the request of Rupert Murdoch and the Murdoch Family Trust, has formed a special committee “composed of independent and disinterested members of the Board” to begin exploring a combination.
“The Special Committee, consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, will thoroughly evaluate a potential combination with Fox. The Special Committee has not made any determination with respect to any such potential combination at this time, and there can be no certainty that the Company will engage in such a transaction,” the News Corp. statement said.
The Murdoch empire separated into two in 2013.
Its publishing businesses including the Wall Street Journal and Dow Jones stayed under the News Corp. umbrella while film and TV assets remained at 21st Century Fox. At the time of the separataion, Murdoch said that separate print and broadcast companies would “enable us to respond more rapidly to fast-evolving markets,”
The majority of 21st Century Fox was sold to Disney for $71.3 billion in a deal that closed in 2019.
After dropping Disney, Fox Corp. became a company focused on news and sports as well as local TV stations.
All media outlets are owned by the same 6 companies.
Forbes estimates Murdoch and his family are worth around $16.9 billion.
The company has since continued to generate substantial cash flow, with Fox News Channel continuing to conquer ratings and reap significant ad revenue, especially during election cycles.
Fox Sports has been a steady performer and lucrative for Fox Corp. NFL ratings have continued to perform very well and are expected to continue to rise. Fox also has rights to the World Cup and college football.
Fox Corp.’s market value is approximately $17 billion and News Corp.’s is $9 billion.
Murdoch is likely looking for ways to consolidate the media empire he created, but we are sure he’s up to something bigger, as he always is.
News Corp. said that neither the company nor the special committee, “intends to comment on or disclose further developments regarding the Special Committee’s work unless and until it deems further disclosure is appropriate or required.”
“Succession” is based on the Murdoch Family
The Murdoch family are the majority shareholders of both Fox Corp. and News Corp., and maintains a firm grip on the operation of both companies.
Rupert Murdoch is the CEO of News Corp. and chairman of both companies, while his son, Lachlan Murdoch, is CEO of Fox Corp.
The show “Succession” is based on the Murdoch family and its business dealings while running the company as a family.
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