Rupert Murdoch at the annual gathering at Spencer House in St James’s Square, London. Image date: Thursday, June 22, 2023.
Victoria Jones | PA Images | Getty Images
Activist investor Starboard Value has decided to dissolve News Corp’s People familiar with the matter said the dual-class share structure is a challenge to the Murdoch family’s control of the Wall Street Journal’s parent company.
The measure was made through a non-binding shareholder resolution, people familiar with the matter said. News Corp’s structure as of September left Rupert Murdoch in control of surrounding affairs 40% of the company’s voting shares.
Starboard owns about 2% of the company’s Class A shares, according to FactSet data. Managing member Jeff Smith told CNBC last year that the company Promote News Corp divest its real estate assets, including equity Rhea Group Australian.
Smith spoke out last year about the dual class structure: “There are people voting to declassify, and that’s something to consider. But there are easier ways to create a lot of value.”
Murdoch is also locked in a legal battle to give his son, Lachlan Murdoch, control of the family trust that holds shares in News Corp., The New York Times and The Wall Street Journal. reported.
Last November, 93-year-old Rupert Murdoch resign as chairman He serves on the boards of News Corporation and Fox Corporation. His son, Lachlan Murdoch, is the sole chairman of News Corp. and continues to serve as executive chairman and CEO of Fox Corporation.
News Corp. shares fell about 1% on the day, after rising slightly when Reuters first reported the news of Starboard’s launch. Starboard is already active at companies such as Autodesk, Match Group and Salesforce.
In addition to owning The Wall Street Journal, News Corp. also owns The Sun and publisher HarperCollins.
Representatives for News Corp and Starboard did not immediately respond to requests for comment.
