(RTTNews) - Responding to a non-binding stockholder proposal, News Corp (NWS, NWSA, NWS.AX, NWSLV.AX) stated that it believes the company's dual-class capital structure promotes stability and has enabled the successful implementation of its transformational strategy, resulting in long-term outperformance for all News Corp stockholders.
News Corp. confirmed that a stockholder has submitted a non-binding proposal for presentation at News Corp's 2024 Annual Meeting of Stockholders to request that the Board of Directors adopt a recapitalization plan that would eliminate News Corp's dual-class capital structure.
Earlier today, Starboard Value, a significant shareholder of News Corporation, issued a letter to News Corp shareholders regarding a proposal to eliminate the company's dual-class share structure.
Starboard believes dual-class share structures are NOT in the best interests of shareholders and are NOT reflective of best-in-class corporate governance practices. Theoretically, some may believe dual-class share structures could provide potential benefits to recently listed companies that, perhaps, want their visionary founder to be insulated against short-term pressures for a limited period of time. However, News Corp could not be further from this archetype.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
