Starboard Value LP is pushing News Corp. to eliminate its dual-class share structure and is prepared to take further action against the media company if it refuses to engage.
In a letter to its fellow investors on Monday, Starboard co-founder Jeffrey Smith wrote that the activist has submitted a non-binding proposal to collapse the dual-share structure, through which the Murdoch family controls of about 41% of the vote at News Corp.
Smith said that Starboard believes it already has support for its proposal, to be voted on at News Corp.’s upcoming 2024 annual general meeting. “If the board refuses to listen, we can then take further action,” Smith wrote.
News Corp. is in a transitional phase following founder Rupert Murdoch’s move last year to step down as chairman of the company and Fox Corp. 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 in his letter.
Starboard holds about 3.7% of News Corp.’s Class A stock and 4.6% of its Class B voting stock, according to a statement. News Corp. has risen more than 25% in New York trading over the last 12 months, giving the company a market value of roughly $15.4 billion.