Activist Investor Challenges Rupert Murdoch’s Control of News Corp

Investing.com — Activist Investor Starboard Value is seeking to challenge Rupert Murdoch’s grip on News Corp A (NASDAQ: NWSA) after filing a shareholder resolution to ditch the dual-class share structure that gives the media mogul outsized voting power, Reuters reported Friday, citing unnamed sources.

News Corp’s dual-class structure is key to Murdoch’s strong control, giving him 40% of the voting stock despite owning only about 14% of the equity, the sources told Reuters.

Starboard Value’s non-binding resolution comes as the activist investor believes that News Corp is trading at a discount to its asset value and could unlock over $7 billion by separating Dow Jones from its real estate division.

As of June 30, Starboard owned 7.2 million Class A shares and 8.7 million Class B shares of News Corp, constituting a 1.9% stake.

The company may attempt to block Starboard’s resolution from proceeding to a vote at its next annual shareholder meeting.

This isn’t the first time News Corp has faced calls for a break-up or restructuring. Last year, Murdoch abandoned a proposal to reunite News Corp with Fox Corp after several major shareholders opposed the move.