Prominent activist investor Starboard Value has recently taken a considerable stake in News Corp (NASDAQ:NWSA), signaling its intention to spearhead strategic and governance transformations within the media conglomerate, a company that counts the Wall Street Journal among its holdings and is an integral part of Rupert Murdoch’s media empire.
Starboard is of the view that News Corp is currently undervalued due to its complex corporate structure. As part of its proposed changes, the investment firm is strongly inclined to recommend the separation of News Corp’s digital-real-estate division, which comprises significant assets such as REA Group, Realtor.com parent Move Inc, as reported by The Wall Street Journal and Reuters.
In addition to this restructuring proposal, Starboard is pushing News Corp to eliminate its dual-class share structure, which presently grants the Murdochs greater voting authority than their economic ownership would imply.
The Wall Street Journal’s report highlights that Starboard holds a substantial stake in News Corp. It’s worth noting, however, that the Murdoch family maintains a significant 40% of the voting stake within the media giant. This substantial ownership interest makes it challenging to institute changes without their approval.
