Starboard dusts off old plan at News Corp

Redfin

16/10/2023 17:18

(The author is a Reuters Breakingviews columnist. The opinions
expressed are their own.)
       NEW YORK, Oct 16 (Reuters Breakingviews) - Maybe it
takes a pile on to move the Murdoch family’s thinking. Reuters
reported on Friday that Jeff Smith’s Starboard is the latest
activist to try and unlock value at News Corp  NWSA.O , the
publisher of the Wall Street Journal, owner of book conglomerate
HarperCollins and Realtor.com. Starboard, which took a position
in the $13 billion company, is pushing for a spinoff of the real
estate assets, according to the Wall Street Journal. That’s an
old activist tune.
    Last year Irenic Capital Management agitated for the same
transaction in reaction to the Murdochs’ desire to reunite News
Corp with broadcasting company Fox  FOXA.O . The companies
dropped the effort to combine after investor pushback. The idea
to hive off the real estate assets still makes sense, though the
window is closing. Market values of Zillow  ZG.O  and Redfin
 RDFN.O , rivals to Realtor, are up 40% over the year, but down
over the last six months as higher rates have slowed both the
housing and advertising markets. Starboard’s thinking may not be
original, but it is still worth hearing. Management risks
ignoring the calls at their own peril.(By Jennifer Saba)
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 (Editing by Lauren Silva Laughlin, Sharon Lam and Aditya
Sriwatsav)
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