• 145 days Could Crypto Overtake Traditional Investment?
  • 150 days Americans Still Quitting Jobs At Record Pace
  • 152 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 155 days Is The Dollar Too Strong?
  • 155 days Big Tech Disappoints Investors on Earnings Calls
  • 156 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 158 days China Is Quietly Trying To Distance Itself From Russia
  • 158 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 162 days Crypto Investors Won Big In 2021
  • 162 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 163 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 165 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 166 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 169 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 170 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 170 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 172 days Are NFTs About To Take Over Gaming?
  • 173 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 176 days What’s Causing Inflation In The United States?
  • 177 days Intel Joins Russian Exodus as Chip Shortage Digs In
Oligarch “Traitors” Appear to Flee Russia for Dubai

Oligarch “Traitors” Appear to Flee Russia for Dubai

Hours after Putin’s speech, several…

Another Banner Year for Billionaires

Another Banner Year for Billionaires

Unsurprisingly, last year was very…

  1. Home
  2. News
  3. Breaking News

The $200 Million ‘Golden Parachute’ For Rupert Murdoch

Murdoch

The $52.4-billion Disney-Fox mega merger represents one of the biggest deals in history and the Murdoch family of 21st Century Fox fame will be compensated nicely—and personally--when the deal goes through.

Rupert Murdoch and sons James and Lachlan will receive more than $206 million in ‘Golden Parachute’ compensation once the deal is finalized, according to Wednesday’s SEC filings.

For patriarch Rupert Murdoch, the golden parachute payout is $66.7 million, some $40 million of which is in cash, while the biggest take-home will be for his son and CEO, James Murdoch, who will receive $70.6 million once the deal closes. Both sons would also receive an additional $22 million in severance pay if fired prior to June 30.

(Click to enlarge)

Source: SEC

The Disney-Fox merger was first announced in December, while SEC filings show that talks were in the works last summer.

In the proposed merger, Disney will acquire 21st Century Fox’s film studio and a collection of TV assets, and Disney will take over once the deal is closed. That means the Murdochs are likely to be out of a job soon, but not without compensation.

For now, it seems unlikely that the Murdoch brothers will receive the extra $22-million compensation package for being let go before June 30, as the deal is not expected to close until later in the summer.

This week, 21st Century Fox President Peter Rice told staffers at Fox Network Group that the merger would likely be completed by the end of the summer. Once completed, Fox branches that are not part of the Disney deal will be renamed. Related: Is Silver Poised For A Massive Break Out?

Media also revealed this week that Comcast Corp. had outbid Disney for Fox, offering 16 percent more but the higher price tag came along with greater regulatory concerns that made Disney’s offer more attractive.

Comcast reportedly offered $34.41 per share for Fox’s entertainment portfolio, while Disney’s offer originally came in at $23 per share, before being increased to $28 per share in August.

The final share value listed in the Wednesday SEC filing was $29.54 per share—Disney’s December 13 closing price.

Not only did Fox reject Comcast’s bid, but Murdoch also had his sights set on beating out Comcast to control British Sky Plc, and it’s getting help from Disney to do it. Earlier in April, media reports said Disney could step in to buy Sky News if Fox acquired Sky. Such a move would help bypass a regulatory hurdle in the UK, where authorities fear that control of Sky would give Murdoch too much influence in the British media industry. Initially, Murdoch offer $16.4 billion for Sky Plc., and rumors now are that he might raise his bid.

For Disney, the move makes sense because Comcast it’s a major U.S. rival, controlling NBC Universal, and also trying to outbid Fox for Sky.

Disney shares are down nearly $10 since the start of the year, as the S&P 500 tread negative waters for the quarter.

(Click to enlarge)

Shares in 21st Century Fox (C1B) are relatively unchanged over the quarter:

(Click to enlarge)

Australian-native Rupert Murdoch and family are already worth $15.4 billion, according to Forbes’ real-time net worth indicator. Globally, he ranks 94th on Forbes list of billionaires, and 31st among U.S. billionaires.

By Charles Benavidez for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment