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The Markets
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Media

Activist investor eyes up News Corp as Murdoch resignation looms

Rupert Murdoch’s media empire News Corp (NASDAQ:NWS) has reportedly become the latest target of activist investor Starboard Value.

Seeking to implement strategic and governance changes, Starboard has built a stake in News Corp since the summer, according to Reuters.

The changes could include the spin-off of its online real estate unit, which includes Realtor.com, and changes to News Corp's share structure which gives the Murdoch family inflated voting power.

Though specific plans are not known, Reuters cited sources saying that Starboard's investment in News Corp had begun just months before Murdoch announced his resignation in September.

Come November, Rupert Murdoch will step down as chairman of the company that owns titles such as The Sun and The Times, to be replaced by his son Lachlan.

According to sources, Starboard believes News Corp is undervalued, with its stake in the business - though not specifically revealed - now “sizable”.

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