Fox CEO Addresses “Why Now” and How to Use Both Companies’ Balance Sheets to Consolidate Earnings
Nine years after separating the news division of his media empire from entertainment – Rupert Murdoch is ready to get the band back together.
And the heir clear? Lachlan Murdoch, who made no point in calling the elephant in the room on Tuesday, reported better-than-expected earnings for Fox Corp. It was also the first time members of the Murdoch clan, which includes six heirs, have raised the topic of recombination of right-wing media giant News Corp with Fox’s now-television prowess.
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“As made public, separate special committees have been established at News Corp and Fox,” Lachlan Murdoch said in a call with analysts. “We will need the approval of both committees and shareholders. Special committees have not made any determinations at this time, and there is no certainty that the company will be involved. ,
The “reunited and it feels great” plan would combine Fox News’s parent with The Wall Street Journal and the New York Post. Rupert Murdoch and his family trust, which control about 40% of the voting stock in both companies, proposed the combination to their respective boards about a month ago. Most non-family shareholders would have to approve such a deal.
Wall Street wasn’t going to let that get away with the prepared statement. Bank of America senior media analyst Jessica Reif-Erlick began the meeting with “I know you don’t want to comment on this…,” which began the nearly hour-long conversation. Fox’s board meets on Thursday for their annual meeting, where the topic of the reunion will be front and center.
“I really can’t talk about it,” he said. “It’s a process and it’s not up to me to discuss (the board) or I can even talk about it.”
But he spoke like the next boss of a united and strong Fox if the News Corp buyout happens. It’s all about scale, he said, at a point when many of Fox’s rivals are getting bigger within minutes thanks to the latest Hollywood acquisition spree.
He was targeting Warner Bros. Discovery, whose CNN ranks second in ratings behind Murdoch’s Fox News. Discovery Communications acquires iconic Warner Bros. studio from AT&T in $44 billion deal that closed in April
“At scale, you have to have the right focus,” he said. “Scale is important because what we have seen among our media peers is that they are betting big. Scale gives flexibility in many ways, we continue to grow our business and look at M&A and are disciplined. Especially in the next few years. ,
