Rupert Murdoch scraps $39b Fox-News mega merger

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Rupert Murdoch has dumped plans for a $US28 billion ($39 billion) mega merger between News Corp and Fox, which analysts and insiders believed was part of the media mogul’s plans to consolidate power in the hands of his son, Lachlan Murdoch.

to re-combine the Murdoch family’s main media assets, setting up independent committee’s within both companies to analyse the deal.On Wednesday, the Murdochs released a statement announcing that the blockbuster deal was off.that a combination is not optimalThe proposal faced an uphill battle after major shareholders came out against the deal, especially News Corp investors who wanted significant changes, which included potentially selling off parts of the company.

The Murdochs claimed that re-combining News Corp and Fox – which had been split after the UK phone hacking scandal that led to News International settling 144 cases brought by celebrities in 2013 – would help the media companies ward off competition from tech giants. But analysts and investors were against the move, doubting that combining News Corp, which includes US, UK and Australian newspaper mastheads, digital real estate assets and book publisher Harper Collins with Fox’s US-based Fox News and Fox Sports would help the companies in the long run.

Sources say Lachlan Murdoch in particular was keen to see the companies come together, hoping to embark on some MAdvertisement The decision to cancel the deal comes after paparazzi photos were released to a UK newspaper showing Rupert Murdoch, 91, with a new girlfriend holidaying in Barbados. The photos come less than six months after Mr

 

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‘Not optimal for shareholders’: Murdoch scraps proposed Fox-News Corp mergerRupert Murdoch has abruptly halted plans for a potential merger of his two major media companies, deciding a tie-up was not in the best interest of shareholders.
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