Hedge fund Starboard Value has reportedly acquired a stake in News Corp and may exert pressure on the Wall Street Journal owner to eliminate its dual-class share structure as one of two segments of the Rupert Murdoch media empire. The Murdoch family’s voting stake in News Corp is around 40%, similar to its stake in Fox Corp. However, removing the share structure would significantly diminish the family’s voting power, a difficult feat to achieve without consent. Starboard, known for pursuing strategic changes at its portfolio companies, may also propose that News Corp divest its real estate websites, including Realtor.com, which is operated by REA Group. At the time of writing, REA stock was down 1.87%, while News Corp was up 3.2%. Starboard values News Corp’s entire portfolio at $20bn, as it believes that the company is undervalued due to its conglomeration structure. According to NASDAQ, News Corp is valued at $12.58bn. The hedge fund has a track record of altering the corporate landscape, taking activist positions in companies like Smithfield Foods and Macy’s. In 2018, Starboard amassed a 5.8% stake in Symantec and nominated five directors to the cyber security firm’s board, three of whom were appointed. In 2017, it acquired a 10.7% stake in Israeli semiconductor maker Mellanox Technologies before trying to remove the entire board the following year.
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