Starboard Value urges News Corp to unlock $7 billion windfall by spinning off online property businesses

Key summary: In Oct 2023, Starboard urged News Corp to spin off online properties, potentially yielding $7 billion and increasing shareholder value.

Market Cap: $12 billion| News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide.

In October 2023, Starboard Value issued a presentation suggesting that News Corp should consider spinning off its online property businesses, estimating it could generate a $7 billion windfall for the company. Starboard believes that News Corp's current valuation of $12.6 billion "does not make sense" and suggests breaking up the business to increase shareholder value. The hedge fund sees potential in separating the digital real estate assets, such as Move Inc and REA Group, through a tax-free spin-off, which could lead to a significant increase in the company's share price.