Murdoch scotches News-fox merger

RUPERT Murdoch has called off plans for a merger between News Corporation and Fox Corporation after a backlash from investors.

Mr Murdoch, 91, cancelled re-combining the two halves of his media empire after first floating the idea last October.

“In withdrawing the proposal, Mr Murdoch indicated that he and Lachlan K Murdoch have determined that a combination is not optimal for shareholders of News Corp and Fox at this time,” News Corp said last night.

T Rowe Price, the second largest shareholder in both companies after Mr Murdoch, told the New York Times in November that it opposed the merger, saying an enlarged News Corp would be undervalued.

Similarly, Irenic Capital Management, which owns a 2pc stake in News Corp, wrote to that company’s board urging directors to reject the merger plan”.

News Corp and Fox were split in 2013, with most of Fox’s entertainment assets sold to Disney for $71bn (£58bn) three years ago.

Mr Murdoch is chairman of both companies. His son Lachlan is chief executive of Fox and co-chairman of News Corp, which owns

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