The committee “is tasked with evaluating a proposal from the Company’s dominant shareholder, who has economic interests on both sides of its proposed recombination transaction. In fact, this shareholder’s economic ownership is weighted more on the side of Fox than on the side of News Corp.
The letter questioned synergies between the two companies. “And even if such synergies do exist today, they would principally benefit Fox and reside in the News Media segment of News Corp. For example, Fox Business may benefit from greater integration with The Wall Street Journal and some of Dow Jones’ other properties, but it is highly debatable whether the benefits from such an association flow both ways.
It also noted financial risk for News Corp., with Fox subject to litigation “that may result in billions in costs.”
How about selling Fox Corp to Sony or Vivendi?