Rupert Murdoch considers Fox and News Corp merger
Rupert Murdoch has been in talks to merge Fox with News Corp, a deal that would reunite the television group behind cable news network Fox with the owner of newspapers including the Wall Street Journal.
The two companies have developed special committees to evaluate a merger, two people familiar with the matter said. The Wall Street Journal first reported that Murdoch was exploring the merger.
Until last year, there were legal obstacles to a reconfiguration of the Murdoch empire — as part of the terms of the 2019 sale of most of Fox’s assets to Disney, Murdoch was barred from further asset sales for two years. This restriction was lifted in March 2021.
The FT reported last year that unless Lachlan Murdoch, who took over as Fox chief executive in 2019, chose not to become the permanent successor to his 91-year-old father, the family would consider reuniting the empire and launching a News Corp. To appoint boss Robert Thomson as leader.
Rupert Murdoch retains command of the family trust, which controls the voting stock of News Corp and Fox. If he dies, the power to determine the trust’s position will be shared equally among Murdoch’s four eldest children, while his two youngest daughters – Grace, 20, and Chloe, 18 – are beneficiaries. This means that at least two or three siblings must agree for a decision to be made.
Fox owns the eponymous cable news channel and local television stations, while News Corp owns newspapers such as the Sun in the UK and the Wall Street Journal.
https://www.ft.com/content/7fd1e056-b612-445e-a4bb-c03a7404a925 Rupert Murdoch considers Fox and News Corp merger