Fox in talks to remerge with News Corp
Rupert Murdoch is considering recombining Fox Corp. and News Corp, two of his largest media assets.
Why it matters: Print and TV audiences have shrunk to the point where it may no longer make sense for Murdoch to keep the two companies separate.
- Murdoch separated the two in 2013 when he spun out News Corp assets, which include Dow Jones — which publishes the Wall Street Journal — and HarperCollins. Murdoch sold the majority of his Fox assets to Disney in 2019, retaining the broadcast TV assets including Fox News.
Details: News Corp has established a special committee to look into a potential combination with Fox following the receipt of letters from Murdoch and the Murdoch Family Trust, the company disclosed in an SEC filing Friday. The Wall Street Journal first reported the news.
- The discussions are at an early stage, and it isn't guaranteed a deal will happen.
- According to SEC filings, the Murdoch Family Trust has a 39% voting stake in News Corp and a 42% voting stake in Fox Corp.
- Neither company immediately responded for comment.
By the numbers: News Corp has a market cap of $9 billion, and Fox is worth nearly $17 billion.
- That combined market cap would put the newly combined on par with media giants like Warner Bros. Discovery, which is worth $30 billion.
What's next: Rumors of Murdoch's — who is 91 — succession plan have been swirling for months. Combining the companies could be a part of it.