Maybe it takes a pile on to move the Murdoch family’s thinking. Reuters reported on Friday that Jeff Smith’s Starboard is the latest activist to try and unlock value at News Corp (NWSA.O), the publisher of the Wall Street Journal, owner of book conglomerate HarperCollins and Realtor.com. Starboard, which took a position in the $13 billion company, is pushing for a spinoff of the real estate assets, according to the Wall Street Journal. That’s an old activist tune.
Last year Irenic Capital Management agitated for the same transaction in reaction to the Murdochs’ desire to reunite News Corp with broadcasting company Fox (FOXA.O). The companies dropped the effort to combine after investor pushback. The idea to hive off the real estate assets still makes sense, though the window is closing. Market values of Zillow (ZG.O) and Redfin (RDFN.O), rivals to Realtor, are up 40% over the year, but down over the last six months as higher rates have slowed both the housing and advertising markets. Starboard’s thinking may not be original, but it is still worth hearing. Management risks ignoring the calls at their own peril. (By Jennifer Saba)
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