Fox’s Class A shares closed Oct. 14 at $31.55, down 15 percent for the year, while News Corp. was down 34 percent to $15.60.
Venkateshwar compared the deal to the re-established Redstone family at Viacom and CBS, which he said did not add much value.
“There is likely to be some investor panic about the thought process behind any combination of the two companies and a clumsy investor reaction is likely to be negative,” Venkateshwar wrote.
James and his wife Catherine have criticized the empire’s coverage of issues such as climate change.attributed to him:Getty Images
At MoffettNathanson, analysts Robert Fishman and Michael Nathanson said the plan was also left “confused”. “We don’t believe in sum-of-the-parts stories, and the combination of Fox Group and News Corp’s assets likely will not result in any revaluation and will likely complicate the narrative for investors,” they wrote. They wrote that Fox as a separate asset has a clear focus.
The authority of the patriarch
Rupert Murdoch, 91, usually makes his way into the business he started building seven decades ago. He is Chairman of the Board of Directors of Fox and CEO of News Corp. He also has the largest share of the vote in the family’s trust, which includes a saying of his four eldest sons, Lachlan; mosques; and two daughters, Prudence and Elizabeth.
Special committees of independent directors will explore potential terms and there is no certainty of a deal.
Fox and News Corp have both developed their digital offerings in recent years, and Lachlan believes he can use both traditional and new media to launch and promote businesses in the future.
The internal quarrels of the family, which were the inspiration for the HBO series SuccessionWell dated.
James and his wife Catherine have criticized the empire’s coverage of issues such as climate change. Katherine is on the board of 19, a news organization dedicated to women’s issues and public policy, and they helped fund Bulwark, an anti-Trump conservative news outlet. They are also a major donor to Democratic candidates.
Meanwhile, Lachlan defended the split of the two companies in a 2019 presentation to investors. Spit, he said, allowed the company to return to its roots as “an agile, creative, entrepreneurial, and at times paradoxical company.” He even went so far as to say that he “sees no sense in reversing the benefits of those specific verbs”.
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His thinking has changed, according to people familiar with the company’s plans. The media landscape has shifted with more consumers viewing content online. Fox and News Corp have both developed their digital offerings in recent years, and Lachlan believes he can use both traditional and new media to launch and promote businesses in the future.
Bloomberg
Originally published at Melbourne News Vine
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