Starboard moves to collapse News Corp’s dual-class shares to challenge Rupert Murdoch

Activist investor Starboard Value filed for dissolution on Friday News Corp. dual-class share structure, a challenge to the Murdoch family’s control of the Wall Street Journal’s parent company, according to people familiar with the matter.

The decision was taken via a non-binding shareholder resolution, the sources said. The structure of News Corp in September gave Rupert Murdoch control of approximately 40% of the voting shares of the company.

News Corp said in a statement on Monday that the conglomerate had “thrived under the current structure” and indicated it would oppose Starboard’s proposal.

Starboard owns about 2% of the company’s Class A shares, according to FactSet data. Managing member Jeff Smith told CNBC last year that the company was lobby for News Corp split its real estate assets, including a stake in REA Group from Australia.

Smith spoke last year about the dual-class structure: “There have been votes in favor of declassification, that’s something to consider as well. But there are simpler ways to create a lot of value.”

Murdoch is also in the middle of a legal battle to give his son Lachlan Murdoch control of the family trust that owns stakes in News Corp, The New York Times and The Wall Street Journal. reported.

Last November, Rupert Murdoch, 93, resigned as president of the board of directors of News Corp and Fox Corp. He is now chairman emeritus of each company. His son, Lachlan Murdoch, is the sole chairman of News Corp. and continued to serve as executive chairman and CEO of Fox Corp.

Shares of News Corp were down about 1% on the day, gaining slightly when Reuters first reported the news of Starboard’s push. Starboard has run campaigns with companies including Autodesk, Match Group and Salesforce.

News Corp, in addition to owning the Journal, also owns The Sun and publisher HarperCollins.

Representatives for News Corp and Starboard did not immediately respond to requests for comment.