Hedge fund challenges Murdoch family’s longtime control over News Corp.
As a seasoned critic of media conglomerates and their intricate power structures, I’ve seen my fair share of family feuds and corporate drama that would put even the most passionate soap opera writers to shame. The latest chapter unfolding at News Corp., a media empire with an impressive roster of publications such as the Wall Street Journal and the New York Post, seems to be no exception.
activist investor Starboard Value questions the ownership system of News Corp., asserting that the dual-class share system grants excessive influence to the Murdoch family, potentially magnifying their intricate personal relationships within the company.
The hedge fund announced that they’ve presented a plan aimed at abolishing the two-tier share system in the company.
According to a recent letter from Starboard, it’s indicated that the said proposal will likely be discussed during News Corp.’s forthcoming annual gathering of shareholders. At this point, the exact date hasn’t been decided, but last year’s meeting was held in November.
News Corporation is the proprietor of several prominent newspapers, such as the Wall Street Journal, the New York Post, Dow Jones, and Investor’s Business Daily.
Starboard explained that their plan was sparked by news articles detailing a power struggle within News Corp. and Fox Corp., which is currently being played out among founder Rupert Murdoch and his offspring, concerning the strategic path for these companies, including Fox News and the Fox broadcast network.
The family’s control of the company is held in a trust, designed to pass management after Rupert Murdoch’s passing to his four children. However, Rupert Murdoch is trying to modify this trust so that only his eldest son, Lachlan Murdoch, will manage the company, preserving its traditional, conservative editorial stance, as reported by The New York Times.
The other three children are disputing this change, the newspaper reported.
News Corp. did not immediately respond to a request for comment.
As per a report submitted to the U.S. Securities and Exchange Commission, the Murdoch Family Trust held less than 1% of the company’s common Class A shares but approximately 40% of the Class B voting shares by June.
Starboard owns 3.7% of the Class A shares and 4.6% of the Class B stock, the hedge fund said.
According to reports, the four Murdoch siblings who hold voting rights within the Trust have significantly different opinions, which could potentially hinder the Company’s strategic decision-making, as stated in a letter by Starboard. Furthermore, we question why their views should be given more importance than those of other shareholders.
As a passionate film enthusiast, I find myself in a unique position where my influence can potentially reshape the narrative. The hedge fund has made it clear that their backing for this proposal sends a powerful signal to the board of directors – one that suggests the need to abolish the dual-class structure. However, if the board chooses to disregard this message, I, as a shareholder with significant influence, am prepared to take further steps to ensure my voice is heard.
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2024-09-09 22:01