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News-Fox merger winner is Lachlan Murdoch

Fox’s Class A shares closed at $31.55 on October 14, down 15% for the year, while News Corp fell 34% to $15.60.

Venkateshwar compared this deal to that of the Redstone family. Remerger of Viacom and CBShe said it wasn’t worth much.

“Investors are likely to have some surprises about the thought process behind the combination of the two companies, and the reactive investor reaction is likely to be negative,” writes Venkateshwar.

James and his wife Kathryn are critical of the media empire’s coverage of issues such as climate change.credit:Getty Images

MoffettNathanson analysts Robert Fishman and Michael Nathanson said they, too, were “scratched” by the plan. “We do not believe in the summation of parts story, and combining the assets of Fox and News his Corporation will not lead to a valuation reset and could further complicate the narrative for investors. will be higher,” they wrote. Fox as a stand-alone asset has a clear focus, they write.

Chieftain’s Power

91-year-old Rupert Murdoch has always had his way with the business he started building 70 years ago. He serves as chairman of his Fox and executive chairman of News Corp. He also has the largest voting rights in his family trusts, including a say in his Lachlan, who is the oldest of his four children. James; two daughters of Prudence and Elizabeth;

A special committee of independent directors will review possible terms, but there is no certainty that the deal will go through.

Both Fox and News Corp have expanded their digital offerings in recent years, and Lachlan believes both traditional and new media can be used to launch and drive business in the future.

The family feud that inspired the HBO series Inheritanceis well documented.

James and his wife Kathryn are critical of the media empire’s coverage of issues such as climate change. Kathryn serves on the board of the 19th, a news agency dedicated to women’s issues and public policy, and has funded her Bulwark, an anti-Trump conservative news agency. They are also big donors to Democratic candidates.

Meanwhile, Lachlan defended the separation of the two companies in a 2019 presentation to investors. He said the spit allowed the company to return to its roots as “a nimble, imaginative, entrepreneurial and sometimes contrarian company.” He even said, “I see no logic in reversing the advantages of these decisive actions.”

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He has changed his mind, according to people familiar with the company’s plans. The media landscape has changed as more consumers watch content online. Both Fox and News Corp have expanded their digital offerings in recent years, and Lachlan believes both traditional and new media can be used to launch and drive business in the future.

bloomberg

News-Fox merger winner is Lachlan Murdoch

Source link News-Fox merger winner is Lachlan Murdoch

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