Starboard Value Pushes for Governance Overhaul at News Corp

Hedge fund Starboard Value has filed a shareholder resolution to eliminate the dual-class share structure of News Corp, controlled by Rupert Murdoch. The fund argues the current system is detrimental to the company's valuation. This development comes amidst Murdoch's legal efforts to secure his son Lachlan's future control of News Corp.

Hedge fund Starboard Value has confirmed it has filed a shareholder resolution to dismantle the dual-class share structure enabling Rupert Murdoch to control News Corp. This move comes mere days after Reuters exclusively reported on the proposal, which seeks to abolish the structure favoring Murdoch, despite his owning only 14% equity.

According to Starboard, the current governance model is inappropriate for a public company and has negatively impacted News Corp's valuation. The hedge fund stated it sees no justification for extending super-voting rights to Murdoch's children, emphasizing adverse effects on News Corp's stock.

Starboard plans to provide further details shortly and has urged the News Corp board to consider its structural concerns. They warned of potential further actions if the board fails to listen. The announcement surfaces amidst Murdoch's legal struggles to secure his son Lachlan's control of News Corp and Fox Corp posthumously. Additionally, News Corp is contemplating options for its Australian television unit, Foxtel, following third-party interest.

(With inputs from agencies.)