Rupert Murdoch’s News Corp should spin-off of its online property businesses for $7bn, according to an activist investor.
Hedge fund Starboard Value, which has been building a stake in News Corp, said the $12.6bn valuation of the company “does not make sense” and management should look at breaking up the business.
Jeff Smith, chief executive at Starboard, said: “If News Corp separates the digital real estate assets through a tax-free spin [off]… shareholders will see significant appreciation in the company’s share price.”
News Corp’s real estate arm includes Move Inc, the owner of Realtor.com, in the US and an interest in REA Group in Australia.
The company briefly looked at a potential $3bn sale of Move Inc to CoStar Group earlier this year.
