Starboard Pushes to End News Corp.'s Dual-Class Structure
What's the story?
Starboard Value, an activist investor, is pushing News Corp. to eliminate its dual-class share structure. This structure gives the Murdoch family, who control the company, more voting power than other shareholders.
Starboard argues that the dual-class structure is outdated and unfair to other shareholders. They believe that it prevents the company from reaching its full potential.
Why is this important?
News Corp. is a major media company with a portfolio of well-known brands, including Fox News, The Wall Street Journal, and The Times of London. The company's dual-class structure has been in place for decades, but it has come under increasing scrutiny in recent years.
If Starboard is successful in its campaign, it could have a significant impact on News Corp.'s governance and future direction.
What's next?
Starboard has submitted a proposal to News Corp.'s board of directors. The board is expected to review the proposal and make a decision in the coming weeks.
If the board does not agree to Starboard's proposal, it could lead to a proxy fight. In a proxy fight, shareholders vote on whether to replace the company's board of directors.
What are the implications?
The outcome of this campaign could have a significant impact on the future of News Corp. If Starboard is successful, it could lead to a more democratic governance structure and greater accountability to shareholders.
However, if the Murdoch family is able to maintain control of the company, it could continue to pursue its own agenda, which may not be in the best interests of all shareholders.
Comments