Independent Franchise Partners, a major Fox and News Corporation shareholder, has expressed opposition to Rupert Murdoch’s current proposal to recombine his media empire.
London-based firm for investment, which has confirmed its position to the, said that it had told Wall Street Journal This is a “straight equity exchange between Fox Corp. and News Corp would dilute and delay the realization of News Corp’s substantial intrinsic value.”
It argues that any combination should involve the sale of key News Corp assets to ensure the company’s stock is valued at more than $30 per share.
IFP has been providing advice to News Corporation at least since July 2020. It has made several recommendations, including the sale of its online real-estate businesses.
News Corp’s businesses include The Wall Street Journal, Dow Jones, The New York Post, Realtor.com, HarperCollins Publishers, Australian pay TV company FoxTel and real estate advertising firm REA Group.
IFP owns a stake of approximately $700,000,000 in News Corp. This represents about 7% and 6.6% respectively of News Corp’s Class A shares. It also holds around 6% of Fox’s Class A shares.
IFP was not the only thing Irenic Capital Management sent. Send a protest letter against the proposed combination, arguing that News Corp’s fundamental value is at least $34 per share. The company also encourages News Corp’s digital real estate and Dow Jones businesses to be spun off. The firm holds approximately 2% of News Corp.’s Class B voting shares.
News Corp stock has fallen more than 19% over the past year, and is currently trading at $18 per share. Fox stock, on the other hand, is down 17%, and is trading at around $30 per share.
Murdoch’s businesses were split back in 2013 after being housed under the News Corp banner. In 2018, Murdoch agreed to sell Fox’s entertainment assets to the Walt Disney Company in a deal valued at $71.3 billion.
News Corp revealed last month that it had formed a special committee made up of “independent and disinterested members of the Board” Following receipt of Murdoch Family Trust letters, it is possible to investigate a combination with Fox Corporation.
It stressed that it would thoroughly evaluate the decision in consultation with independent legal and financial advisors, to make sure it is consistent with fiduciary obligations. Additionally, the company noted that its 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.”
Fox representatives and News Corp. reps declined to comment.
