Fox Corp said on Tuesday that Rupert Murdoch had scrapped a proposal to combine the company with News Corp, in a deal that would have reunited the media empire he split nearly a decade ago.
Murdoch sent a letter to News Corp and Fox withdrawing his proposal to bring the companies together, according to a regulatory filing. He said he and his son, Fox Corp CEO Lachlan Murdoch, had determined the mix was “not optimal” for shareholders.
Prominent News Corp investors have criticized the proposal.
The special committees of the Fox and News Corp boards that were reviewing the proposed merger have now been disbanded, the companies said in statements.
The planned merger would have combined the right-wing and highly controversial TV channel’s Fox News and TMZ assets with News Corp’s news operations, which include the Times and Sun newspapers and websites in the UK, the Wall Street Journal and the New York Post in the US, and the Australian.
Murdoch had originally split up his media empire in 2013, placing the print business under a new public entity, News Corp, and television and entertainment under 21st Century Fox. The merger would have effectively reunited them.