Lachlan Murdoch, the executive chairman and CEO of Fox Corporation, is the one that announced the end of the merger with News Corporation. According to him, this was an agreement reached by both him and his father, Rupert Murdoch, who is the executive chairman of News Corporation.
Investors will note that the Murdoch family holds a significant stake in both of these companies. That includes a 42% stake in Fox Corporation, as well as a 39% stake in News Corporation. They also previously belonged to the same parent company until a split in 2013.
Lachlan Murdoch said the following in a statement published by Fox News:
‘The decision to no longer explore a combination with News Corp does not impact our operations or strategic priorities at FOX. We remain focused on the strength of our core businesses, which distinguish us from our media peers, while delivering both operationally and financially to create long-term value for our shareholders.”
Why Was the Merger Called Off?
According to insiders, the deal was terminated after investors pushed back against the merger. That includes James Murdoch, Rupert Murdoch’s other son, reportedly questioning the deal. James resigned from the News Corp Board back in 2020 over editorial disagreements.
Investors in NWSA stock are reacting well to today’s news with the company’s shares gaining 6.7% as of Wednesday morning.
Investors looking for more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Wednesday! A few examples include why shares of Sonoma Pharmaceuticals (NASDAQ:SNOA), Grom Social Enterprises (NASDAQ:GROM), and Waitr (NASDAQ:ASAP) stock are moving today. You can read up on that news at the links below!
More Wednesday Stock Market News
- Why Is Sonoma Pharmaceuticals (SNOA) Up 70% Today?
- Why Is Grom Social Enterprises (GROM) Stock Down 30% Today?
- Why Is Waitr (ASAP) Stock Down 23% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.