Rupert Murdoch is reportedly considering a recombination of Fox (FOXA) and News Corp (NWSA).
According to Murdoch-owned The Wall Street Journal (WSJ), the 91-year-old businessman is currently in early discussions to rejoin the two entities of his media empire, which formerly split in 2013. Disney acquired the bulk of Fox’s entertainment assets in a $71 billion deal back in 2019.
The WSJ report added that special board committees have been established by both companies to study a possible deal and evaluate potential financial terms.
Fox Corp includes television juggernaut Fox News and the Fox broadcast network, along with streaming service Tubi and other local TV stations.
News Corp, meanwhile, is the publishing arm of Murdoch’s media empire and serves as the parent company of HarperCollins and Dow Jones, the publisher of The Wall Street Journal.
According to SEC filings, the Murdoch family trust controls an approximate 39% voting stake in News Corp and about a 42% voting stake in Fox Corp.
Media mergers and acquisitions are nothing new with major corporations like Paramount Global (PARA) and Warner Bros. Discovery (WBD) recently completing their own respective consolidations, while Amazon (AMZN) closed its $8.5 billion acquisition of MGM Studios in March.
Lack of cash and increased competition have served as catalysts to the recent activity with many searching for new revenue drivers and monetization opportunities.
News Corp shares, which have plummeted more than 30% year-to-date, moved roughly 5% higher in after-hours trading on heels of the news.
Alexandra is a Senior Entertainment and Food Reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at alexandra.canal@yahoofinance.com
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Read More:Rupert Murdoch considers recombination of Fox and News Corp: Report
2022-10-14 21:44:39
