In a brief statement released on Friday as the market closed in the United States, News Corp revealed that it was considering the possibility of merging with Fox Corp. The news was first reported in News Corp. The Wall Street Journal.

The News Corp statement said:

News Corporation (“News Corp” or the “Company”) today announced that the Company’s Board of Directors, following receipt of letters from K. Rupert Murdoch and the Murdoch Family Trust, has formed a Special Committee composed of independent and disinterested members of the Board (the “Special Committee”) to begin exploring a potential combination with Fox Corporation.

The Special Committee, in accordance with its fiduciary duties and in consultation with its independent financial and legal advisors, will thoroughly evaluate a potential combination with Fox. The Special Committee has not made any decision regarding such a potential business combination at this time, and there can be no assurance that the Company will enter into such a transaction.

Neither the Company nor the Special Committee intends to comment on or disclose further developments regarding the work of the Special Committee unless and until they determine that additional disclosure is appropriate or required.

Meanwhile, on Friday, Fox Corporation also released a statement that it also received letters from K. Rupert Murdoch and the Murdoch Family Trust and was subsequently exploring a potential combination with News Corporation.

Rupert Murdoch, the chairman of both companies, proposed the deal over the past two weeks, reports The New York Times.

The newspaper also added: Robert ThompsonChief Executive of News Corp, told employees of the proposed merger in an email Friday:

At News Corp, we are constantly looking for ways to improve our performance and expand our business, and the media upheaval presents both challenges and opportunities.
However, I would like to emphasize that the special committee has not made any decision at this stage and that there can be no certainty that a transaction will result from its evaluation.

Meanwhile, Variety reported on an email that Fox Corp Chief Executive Lachlan Murdoch sent to staff:

As a company, we are always exploring opportunities to strengthen and grow our business, especially at a time of such dynamic changes in the media industry.
However, I would like to point out that the special committee has not yet made a decision and that there is no certainty that a transaction will result from its evaluation.

Disney’s Rupert Murdoch and Bob Iger in 2019 when Disney acquired 21st Century Fox

All of the assets of the two companies would not be reunited as they once were. In 2019, Walt Disney Co acquired key assets including the 21st Century Fox film studio. After this sale, a new look Fox Corp emerged with key assets Fox Sports (USA), Fox Network, Fox TV Stations and AVOD service Tubi.

See also: Record revenue and profits continue: News Corp reports full-year results + reaction