Rupert Murdoch has ended a proposal to reunite his News Corp. and Fox Corp., saying the merger does not come at the right time for shareholders.
In similar statements Tuesday, the companies said their boards had received letters from Murdoch withdrawing the plan.
“Mr. Murdoch indicated that he and (his son and Fox Corp. CEO) Lachlan K. Murdoch have determined that a combination is not optimal for News Corp. and FOX shareholders at this time. “, say the press releases.
The elder Murdoch first merged News Corp. – which owns the Wall Street Journal, New York Post, Sun and Times in the UK, and book publisher HarperCollins – and Fox Corp. which controls Fox News, Fox Sports and local television stations, in October, according to regulatory filings.
The media mogul had sent letters to the companies’ boards, which formed committees to review a possible merger.
News Corp. started as one company but split into two in 2013: 21st Century Fox with entertainment assets and News Corp. with publishing and media assets including The Wall Street Journal and HarperCollins.
The Murdoch family controls both companies but spun Fox Properties into a separate company after selling much of the Fox entertainment empire to the Walt Disney Co. for $71 billion in a 2019 deal .
In premarket trading, shares of News Corp. rose 1.8% while shares of Fox rose 3.9%.
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