Rupert Murdoch at his annual party at Spencer House, St James' Place in London. Photograph date: Thursday 22 June 2023.
Victoria Jones | Pennsylvania Images | Getty Images
Activist investor Starboard Value has decided to dissolve its company News Corporation The dual-class share structure poses a challenge to the Murdoch family's control of the Wall Street Journal's parent company, according to people familiar with the matter.
The move was carried out via a non-binding shareholder resolution, the sources said. News Corp's structure as of September gave Rupert Murdoch control of around 40% of the company's voting shares.
Starboard owns about 2% of the company's Class A shares, according to FactSet data. Managing partner Jeff Smith told CNBC last year that the firm was pushing for News Corp to spin off its real estate assets, including a stake in REA Group from Australia.
Last year, Smith was outspoken about the dual class structure: “There have been votes in favour of declassification, so that's something to consider as well. But there are easier ways to create a lot of value.”
Murdoch is also in the midst of a legal battle to give his son Lachlan Murdoch control over the family trust that owns the News Corp stake, the New York Times and Wall Street Journal reported.
Last November, Rupert Murdoch, 93, stepped down as chairman of the boards of News Corp and Fox Corp. He is now chairman emeritus of both companies. His son, Lachlan Murdoch, is the sole chairman of News Corp. and continued in his role as executive chairman and CEO of Fox Corp.
News Corp shares fell about 1% on the day, rising slightly when Reuters first reported the news of Starboard's initiative. Starboard has run campaigns at companies including Autodesk, Match Group and Salesforce.
News Corp, in addition to owning the Journal, also owns The Sun and the publishing company HarperCollins.
Representatives for News Corp and Starboard did not immediately respond to requests for comment.
