Fox and News Corp, After Years Apart, Explore Merger
Fox Corp. and News Corp. on Wednesday began formal talks about the creation of a new $6.7 billion media company as the Murdochs and the Wall Street moguls grapple with the combined companies’ struggles to turn a profit.
The talks, first reported by the New York Times and confirmed by a person familiar with them, represent the latest attempt to merge America’s most lucrative media properties, and the latest sign of the growing tensions and potential for a breakup between Rupert Murdoch and his son James.
The deal could still fall apart, however, as News Corp. and Fox Corp. continue to disagree about the price and terms of the deal.
“There’s no deal yet,” said one person familiar with the negotiations. “If the Murdochs don’t come to an agreement with Fox, then we’re done.”
Fox Inc. Chief Executive Rupert Murdoch and his father, Rupert, hold a board meeting at Fox’s Burbank, Calif., headquarters on Wednesday.
News Corp. Chief Executive Rupert Murdoch and his father, Rupert, hold a board meeting at News Corp.’s News Corp. in New York on Wednesday.
It was unclear whether News Corp. will consider an offer it received from Fox at this stage in the talks.
“We are going to be working closely with Rupert Murdoch in the next few days,” News Corp. Chief Executive Rupert Murdoch told reporters in a conference call. “There is an opportunity, but we are going to be working closely with him.”
News Corp. said last week the negotiations began as a meeting to discuss the company’s “strategic options” for the future, and that Rupert Murdoch and James Murdoch would be “cooperating” through their respective companies.
Fox Corp. and News Corp. have a complicated relationship. They have competed against each other in print advertising. They also have been rivals in the race to deliver a video and audio subscription service to compete with Netflix and Apple Inc.
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