Shareholders Rebel Against Murdoch's Political Donations at News Corp

Strategic Insights -

News Corp, the media conglomerate chaired by Rupert Murdoch, is facing opposition from its shareholders over Murdoch's decision to donate $2 million to the Republican party. F&C Asset Management, a London-based investment group, has decided not to back the re-election of Sir Rod Eddington, a long-serving News Corp director, in protest of Murdoch's actions. The Nathan Cummings Foundation, a private US foundation with a small stake in News Corp, has also written to the company's board, requesting that they disclose all political spending before the annual meeting on Friday.

Key Takeaways:

  • F&C Asset Management, a London-based investment group, controls 78,000 shares in News Corp worth around $1.16 million, and has decided not to back the re-election of Sir Rod Eddington due to concerns over Murdoch's donations to the Republican party.
  • The Nathan Cummings Foundation, a private US foundation with a small stake in News Corp, has written to the company's board requesting that they disclose all political spending before the annual meeting on Friday.
  • News Corp recently donated $1 million to the US Chamber of Commerce, a business lobby which campaigns for the Republicans to retake control of Congress, and contributed $1 million to Republican candidates in August.
  • Karina Litvack, head of governance and sustainable investment at F&C, stated that while companies can engage in policy debate, there needs to be a clear and transparent process to ensure that such activities serve the interests of shareholders.
  • There is no evidence of a political contributions policy or process at News Corp.

Statistics:

  • 78,000 shares in News Corp are controlled by F&C Asset Management.
  • The value of F&C's holding in News Corp is around $1.16 million.
  • $2 million has been donated by News Corp to the Republican party.
  • $1 million of this amount was donated to the US Chamber of Commerce.
  • $1 million was contributed to Republican candidates in August.
  • 2008: In the run-up to the last presidential election, Murdoch backed Democrat candidates.

Sources:

  • The Guardian
  • Financial Times
  • F&C Asset Management
  • Nathan Cummings Foundation
  • News Corp