Jeffrey Smith, CEO of activist firm Starboard Value, is making the case to separate News Corp.’s real estate assets from its news business.
The firm's CEO Jeffrey Smith told CNBC's David Faber on Tuesday Starboard has been in discussions with News Corp.
Smith said News Corp. should split out its real estate assets, including an interest in REA Group of Australia. News Corp. also owns the Dow Jones news business, which includes publications such as The Wall Street Journal and New York Post. A News Corp. spokesperson said Tuesday that the company has"always maintained an active and engaged dialogue with our investors and are committed to driving shareholder value.""We remain focused on executing our strategic plan, which has helped us set records in profitability over the past three years," the spokesperson said. "We are proud of our rapid digital transformation and bright prospects for long-term growth and value creation.
On Tuesday, Smith called out the valuation discrepancies between the news and real estate businesses. He noted that News Corp.'s"crown jewel" news division trades at four-times earnings before interest, taxes, depreciation and amortization – compared with competitor New York Times, which trades at 15-times."It's a great business, a great asset, it's just too cheap," Smith said of News Corp.'s stock price. News Corp. shares were slightly down on Tuesday at $21.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Starboard CEO makes case for spinning off real estate assets from WSJ owner News CorpJeffrey Smith, CEO of activist firm Starboard Value, is making the case to separate News Corp.’s real estate assets from its news business.
Read more »
Starboard CEO makes case for spinning off real estate assets from WSJ owner News CorpJeffrey Smith, CEO of activist firm Starboard Value, is making the case to separate News Corp.’s real estate assets from its news business.
Read more »
Starboard Value's Jeff Smith unveils his newest ideas, including a push for News Corp spinoffStarboard Value's Jeff Smith on Tuesday presented his newest investment ideas across different industries.
Read more »
Starboard's Smith pushes for News Corp break-upStarboard's Smith pushes for News Corp break-up
Read more »
Activist investor Starboard reportedly seeks changes at News CorpStarboard believes parent company of MarketWatch and Wall Street Journal is undervalued, according to WSJ report
Read more »
Activist Starboard has a 'sizeable' stake in News CorpActivist Starboard has a 'sizeable' stake in News Corp - reports
Read more »