In a short statement released on Friday as the market closed in the US, News Corp revealed it was mulling over the possibility of merging with Fox Corp. The news was first reported in News Corp-owned The Wall Street Journal.
The News Corp statement said:
News Corporation (“News Corp” or the “Company”) announced today that the Company’s Board of Directors, following the receipt of letters from K. Rupert Murdoch and the Murdoch Family Trust, has formed a Special Committee composed of independent and disinterested members of the Board (the “Special Committee”) to begin exploring a potential combination with Fox Corporation.
The Special Committee, consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, will thoroughly evaluate a potential combination with Fox. The Special Committee has not made any determination with respect to any such potential combination at this time, and there can be no certainty that the Company will engage in such a transaction.
Neither the Company nor the Special Committee intends to comment on or disclose further developments regarding the Special Committee’s work unless and until it deems further disclosure is appropriate or required.
Meanwhile at the same time on Friday Fox Corporation also released a statement it too had received letters from K. Rupert Murdoch and the Murdoch Family Trust and was subsequently exploring a potential combination with News Corporation.
Rupert Murdoch, the chairman of both companies, proposed the deal within the past two weeks, reported The New York Times.
The paper also added: Robert Thomson, the chief executive of News Corp, told employees about the merger proposal in an email on Friday:
At News Corp, we are constantly pursuing ways to enhance our performance and expand our businesses, and the upheaval in media presents both challenges and opportunities.
However, I would like to stress that the Special Committee has not made any determination at this time, and there can be no certainty that any transaction will result from its evaluation.
Meanwhile, Variety reported on an email Fox Corp chief executive Lachlan Murdoch sent to staff:
As a company, we are always exploring opportunities to strengthen and grow our business, particularly at a time of such dynamic change in the media industry.
However, I want to emphasise that the special committee has not made any determination at this time, and there can be no certainty that any transaction will result from its evaluation.
Rupert Murdoch and Disney’s Bob Iger in 2019 when Disney acquired 21st Century Fox
Not all the assets of the two firms would join together again as they once were. In 2019 Walt Disney Co acquired key assets including the movie studio 21st Century Fox. After that sale, a new look Fox Corp emerged with key assets Fox Sports (US), the Fox Network, Fox Television Stations and AVOD service Tubi.
See also: Record revenue and profits continue: News Corp reports full year results + reaction