News Corp-Fox merger plan faces opposition from major shareholder

MEDIA mogul Rupert Murdoch’s plan to recombine News Corp with Fox Corp is facing opposition from Independent Franchise Partners, a major shareholder in both firms, the Wall Street Journal reported on Wednesday (Nov 23).

The London-based investment firm told a special committee of News Corp’s board last month that it thinks a combination on its own would fail to realise the full value of the company, the report said, citing a statement from the investor.

Independent is the second shareholder to express dissent over the plan this week, after News Corp investor Irenic Capital suggested a spin-off of the media company’s digital real estate business or Dow Jones as an alternative to its merger.

In October, Murdoch proposed to reunite his media empire by combining News Corp and Fox Corp nearly a decade after the companies split. The firms said they had formed special committees to evaluate the proposal.

Independent Franchise Partners and Fox did not immediately respond to Reuters requests for comment. News Corp declined to comment.

The investment firm owns about 7 per cent of News Corp’s Class A shares and 6.4 per cent in Fox Corp, according to Refinitiv data. REUTERS