Rupert Murdoch Explores News Corp and Fox Corp Consolidation

  • Rupert Murdoch weighed merging his media empire, News Corp NWSA and Fox Corp FOX, nearly a decade after the companies split.
  • People familiar with Murdoch’s proposal said both companies could benefit from being more significant, the Wall Street Journal reported.
  • The combined company would have more balance sheet strength to pursue acquisitions. 
  • The companies would be on a firmer footing to compete for digital-ad dollars, using the scale of their combined properties, people familiar with the proposal believe.
  • The combined companies would have around $24 billion in revenue, CNBC reported.
  • The companies could join forces in sports betting, a growing sector in which each side has interests, they added.
  • The combined assets of News Corp and Fox could present a more robust offering to advertisers in a marketplace increasingly dominated by prominent tech players. 
  • Lachlan Murdoch, co-chair of News Corp and executive chair and CEO of Fox, would likely see a significant expansion of his responsibilities in a merger. 
  • Robert Thomson, the News Corp CEO, who has had a good working relationship with Lachlan Murdoch, could retain a significant role.
  • Fox is a leaner company after selling significant entertainment assets to Walt Disney Co DIS years ago. News Corp has struggled to lift its stock price, despite making strides in publishing and digital real-estate units. 
  • There could be significant takeover interest in his media properties, dealmakers said. A giant company could make any unwanted takeover attempts more challenging.
  • Some highlighted potential risks in mashing together the vastly different journalistic brands of Fox News and News Corp.
  • Price Action: NWS shares traded higher by 2.51% at $16.36 in the premarket on the last check Monday. FOX shares are down 5.25% at $27.63.
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