Fox Shares Fall 3.4% as Murdoch Merger Talk Resurfaces

Court records show Rupert Murdoch's plan to reunite Fox and News Corp could resurface, reviving a merger abandoned in 2022.

Fox Corp. shares fell 3.4 percent after court records showed Rupert Murdoch's plan to reunite the broadcaster with News Corp could resurface, reviving a merger abandoned in 2022.

"The references in the court records concerned a potential merger considered in 2022. There have been no merger discussions between FOX and News Corp since then," Fox said in a statement. News Corp referred Reuters to Fox's statement.

Fox shares closed at $67.22 on Aug. 27, down 3.42 percent, while News Corp shares gained 0.7 percent. A reunion would combine Fox News and the broadcast network with News Corp's Wall Street Journal, Sun and New York Post.

The deal would create a media conglomerate spanning television, newspapers, publishing and streaming, drawing regulatory scrutiny and reshaping the sector as traditional viewing declines.

The disclosures emerged from the Murdoch family's succession dispute, which began in 2023 when Rupert Murdoch sought to amend the family trust to give eldest son Lachlan effective control of both companies. The dispute was settled last year, with Lachlan emerging as his father's business successor and the three other children — Prudence MacLeod, Elisabeth and James — receiving $1.1 billion each.

Court testimony from a June hearing showed how strongly Rupert Murdoch pursued the 2022 merger. He drafted a letter to both boards stating the family trust would not vote in favor of any alternative sale or merger. When his daughter Elisabeth questioned the plan, he reportedly told her he would "ram it through" if necessary. The proposal ultimately failed after investors resisted the combination, and Lachlan's attorney argued the references should remain sealed because such a deal was "something that still could happen in the future."

Fox's Financials Show a Business Scaling Up

The merger talk comes as Fox posts strong top-line growth. For the fourth quarter ended June 30, revenue rose 28 percent to $4.212 billion from $3.287 billion a year earlier, while adjusted EBITDA improved to $1.195 billion from $939 million. Net income slipped to $691 million from $717 million.

For the full fiscal year, revenue reached $17.126 billion, up from $16.3 billion, and adjusted EBITDA rose to $3.906 billion from $3.624 billion. Annual net income declined to $1.685 billion from $2.263 billion, reflecting higher content costs and investment in digital platforms. Fox shares trade at a price-earnings ratio of 18, roughly 10.5 percent above an estimated fair value.

A Reunion Would Reshape Murdoch's Empire

Murdoch split his empire in 2013 following the hacking scandal at his UK newspapers, separating the television business from newspaper operations. A reunion would reverse that split, bringing together assets spanning news, sports and entertainment.

Fox has expanded its digital focus, agreeing in June to acquire streaming platform Roku for $22 billion, giving it access to more than 100 million households. A combined Fox-News Corp would control a broad portfolio of media properties, potentially unlocking cost savings and content-sharing opportunities while drawing antitrust review.

While the latest court disclosures do not indicate a new merger is under discussion, they show that reuniting the two companies has remained central to Murdoch's media strategy. Investors will watch for any fresh signals from either board, with the next development likely to be a formal approach or regulatory filing.

This article is for informational purposes only and does not constitute investment advice.