Activist investor Starboard Value argued in a letter to fellow shareholders that the share structure of the company gave the Murdochs “outsized influence”.
Activist investor Starboard Value’s proposal to end the dual-class share structure at News Corp got struck down during a vote at the media company’s annual meeting.NY Post
and other businesses, giving any proposal without their support a slim chance of passing. In a statement the company said the nonbinding proposal had been “convincingly” defeated.Starboard co-founder Jeffrey Smith argued in a letter to fellow shareholders in September that the dual-class structure provides the Murdochs with “outsized influence.” He referenced Rupert Murdoch’s decision to step down as chairman of News Corp and Fox Corp last year and leave his son, Lachlan Murdoch, in charge.
“This transition of power from Rupert Murdoch to his children has allowed for complicated family dynamics to potentially impact the stability and strategic direction of News Corp.,” Smith wrote.The family is mired in a contentious legal battle between Rupert Murdoch and three of his other children over the family trust that owns the voting stock in News Corp and Fox.
News Corp’s board of directors pushed back on Starboard’s proposal in September and said in a statement that the dual-class structure “promotes stability” and that the company “has thrived under the current structure.”
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