Irenic Capital to Support Elimination of News Corp’s Dual-Class Share Structure
Irenic Capital Management, one of News Corp's largest unaffiliated shareholders, announced its support for Starboard Value LP's proposal to eliminate News Corp's dual-class share structure. Irenic advocates for a 'one share, one vote' principle while recommending that high-vote Class B shareholders receive a substantial premium for the conversion, citing recent similar reclassifications that provided premiums ranging from 26.5% to 31%. The firm maintains confidence in management's efforts to unlock shareholder value, despite the lengthy process, particularly regarding the Dow Jones and REA franchises.
Irenic Capital Management, uno dei maggiori azionisti non affiliati di News Corp, ha annunciato il suo supporto per la proposta di Starboard Value LP di eliminare la struttura azionaria a doppia classe di News Corp. Irenic sostiene il principio 'una azione, un voto' e raccomanda che gli azionisti di classe B con diritti di voto elevati ricevano un sostanziale premio per la conversione, citando recenti riclassificazioni simili che hanno fornito premi compresi tra il 26,5% e il 31%. La società mantiene fiducia negli sforzi della direzione per liberare valore per gli azionisti, nonostante il lungo processo, in particolare riguardo ai marchi Dow Jones e REA.
Irenic Capital Management, uno de los mayores accionistas no afiliados de News Corp, anunció su apoyo a la propuesta de Starboard Value LP para eliminar la estructura de acciones de doble clase de News Corp. Irenic aboga por el principio 'una acción, un voto' mientras recomienda que los accionistas de Clase B con derechos de voto altos reciban una prima sustancial por la conversión, citando recientes reclasificaciones similares que ofrecieron primas que oscilan entre el 26.5% y el 31%. La firma mantiene la confianza en los esfuerzos de la dirección por desbloquear valor para los accionistas, a pesar del largo proceso, especialmente en lo que respecta a las franquicias de Dow Jones y REA.
아이레닉 캐피탈 매니지먼트는 뉴스 코프의 가장 큰 비소속 주주 중 하나로서, 스타보드 밸류 LP의 제안에 대한 지지를 발표했습니다. 아이레닉은 '주식 1주, 1표' 원칙을 옹호하며, 높은 의결권을 가진 B주주들이 전환에 대해 상당한 프리미엄을 받을 것을 권장하고, 26.5%에서 31%에 이르는 최근의 유사 재분류에서의 프리미엄을 인용합니다. 이 회사는 과정이 길어도, 특히 다우존스와 REA 프랜차이즈에 관한 관리의 노력을 통해 주주 가치를 잠금 해제하는 데 대한 신뢰를 유지하고 있습니다.
Irenic Capital Management, l'un des plus grands actionnaires non affiliés de News Corp, a annoncé son soutien à la proposition de Starboard Value LP visant à éliminer la structure d'actions à double classe de News Corp. Irenic défend le principe 'une action, une voix' tout en recommandant que les actionnaires de classe B, ayant des droits de vote élevés, reçoivent une prime substantielle pour la conversion, citant des reclassements récents similaires qui ont offert des primes variant entre 26,5 % et 31 %. La société continue d'avoir confiance dans les efforts de la direction pour débloquer de la valeur pour les actionnaires, malgré la longueur du processus, notamment en ce qui concerne les franchises Dow Jones et REA.
Irenic Capital Management, einer der größten nicht verbundenen Aktionäre von News Corp, gab seine Unterstützung für den Vorschlag von Starboard Value LP zur Abschaffung der dualen Aktienstruktur von News Corp bekannt. Irenic befürwortet das Prinzip 'eine Aktie, eine Stimme' und empfiehlt, dass hochstimmige Klasse-B-Aktionäre eine erhebliche Prämie für die Umwandlung erhalten, und verweist auf kürzliche ähnliche Umklassifizierungen, die Prämien zwischen 26,5% und 31% boten. Die Firma bleibt zuversichtlich in die Bemühungen des Managements, den Aktionärswert zu erschließen, trotz des langen Prozesses, insbesondere in Bezug auf die Dow Jones- und REA-Franchises.
- Management is actively working to unlock immediate value for shareholders
- Support from major shareholder (Irenic Capital) for improved corporate governance
- Lengthy process in implementing value-unlocking initiatives
- Potential cost of premium payment to Class B shareholders for share structure conversion
Insights
The proposed elimination of News Corp's dual-class share structure represents a significant corporate governance shift. The support from Irenic Capital, a major shareholder, alongside Starboard's proposal, adds substantial momentum to this transformation. Historical precedents from similar reclassifications suggest a premium range of
This restructuring could enhance market value by improving corporate governance and shareholder democracy. The move aligns with modern governance standards and could attract institutional investors who typically avoid dual-class structures. The timing is particularly relevant given the broader market trend toward single-class share structures and increased focus on shareholder rights.
The endorsement while maintaining support for management suggests a balanced approach to governance reform rather than a broader activist campaign. This cooperative stance increases the likelihood of a successful transition.
The potential share structure reorganization could unlock significant shareholder value. Based on comparable transactions, News Corp's Class B shareholders might receive a premium of
The market's positive reaction to similar historical reclassifications suggests potential upside for both share classes. The focus on Dow Jones and REA as key franchises indicates strategic value that could be better reflected in a simplified share structure. The support from major shareholders while maintaining confidence in management's value creation strategy creates a favorable environment for this transformation.
Intends to Vote in Favor of Starboard’s Proposal to Collapse the Dual-Class Share Structure Because One Share Should Equal One Vote
Believes Holders of News Corp’s High-Vote Class B Shares Should Receive a Substantial Premium Consistent with Recent Similar Reclassifications
Will Vote For Management Directors; Believes News Corp Management Will Take Concrete Actions to Unlock Shareholder Value
November 5, 2024
News Corporation
1211 Avenue of the
Dear Members of the Board of Directors,
We are writing on behalf of Irenic Capital Management, L.P. (together with its affiliates, “Irenic” or “we”). Irenic is one of the largest unaffiliated shareholders of News Corporation (“News Corp” or the “Company”).
We write for three reasons:
- First, Irenic intends to vote in favor of Starboard Value LP’s (“Starboard”) proposal to recommend the News Corp Board of Directors (the “Board”) eliminate the Company’s dual-class share structure. We agree with Starboard that such structures are outmoded and run afoul of fundamental corporate governance principles and are destructive of market value. One share should equal one vote.
- Second, while we support Starboard’s proposal, we believe that when a dual-class share structure has been in-place for a long period of time, as it has been at News Corp, the high-vote stockholders should receive consideration for converting to a best-in-class corporate governance structure that benefits all stockholders. Paying a premium to high-vote stockholders is consistent with recent reclassifications:
-
In Constellation Brands, Inc. (2022) high-vote shareholders were paid a
26.5% premium. -
In Forest City (2016) high-vote shareholders were paid a
31.0% premium. -
In Hubbell Incorporated (2015) high-vote shareholders were paid a
28.3% premium.
- We believe paying a substantial premium for the News Corp Class B Common Stock to convert to a single-share structure is appropriate – and encourage the Board and Starboard to work cooperatively to arrive at a fair value.
- Third, our support for collapsing the dual-class share structure is not a reflection of our displeasure with management’s efforts to unlock value at News Corp. While this process has taken longer than most similar processes, we do believe management is working earnestly to take concrete actions that will unlock immediate value and position News Corp’s excellent, but separate, franchises, Dow Jones and REA, for long-term success.
Thank you for your consideration.
Adam Katz |
Andy Dodge |
Krishna Korupolu |
||
Co-Founder, CIO |
Co-Founder, Director of Research |
Senior Analyst |
About Irenic
Irenic Capital Management, LP is an investment management firm founded by Adam Katz and Andy Dodge. Based in
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105648807/en/
Irenic Capital Management
contact@irenicmgmt.com
Longacre Square Partners
Dan Zacchei / Ashley Areopagita, 646-386-0091
irenic@longacresquare.com
Source: Irenic Capital Management, L.P.
FAQ
What is Irenic Capital's position on News Corp's (NWSA) dual-class share structure?
What premium range is suggested for News Corp's (NWSA) Class B shareholders?
How does Irenic Capital view News Corp's (NWSA) current management performance?
