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Rupert Murdoch Backtracks on Plan to Merge Fox and News Corp

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Shortly after, one of News Corp’s largest shareholders, T. Rowe Price, said in an interview with The New York Times that the proposed merger would probably undervalue News Corp, which it believed was trading for less than the company was worth.Further complicating matters was the divergent performance of each company’s stock price — News Corp jumping about 26 percent while Fox inched up about 3 percent — since Mr. Murdoch’s proposal became public. His initial plan would have divided ownership among stockholders based on the market value of each company, but it did not specify how it would be divided.The proposal raised questions about what it would mean for succession at the companies, with many believing a merger would give Lachlan, his father’s ch …

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