News Corp. Shareholders Sue Rupert Murdoch Over $663 Million Deal

According to The Hollywood Reporter, Rupert Murdoch is being sued by shareholders of his News Corp. organization, who claim Murdoch is overpaying for his daughter Elisabeth’s production company, Shine Group, by purchasing it for $663 million.

Last month, News Corp. announced it would pay $663 million for Shine Group, producers of Merlin, Spooks and Masterchef. Elisabeth would then join the News Corp. board.

The shareholders also claim Murdoch is using News Corp. like “a family candy store” and claim his relationship with his daughter is “nepostic.”

THR writes, “Amalgamated Bank of New York and the Illinois-based Central Laborors Pension Fund have filed papers at Delaware Chancery Cour” to return financial damages and discover how the deal was approved.

“The transaction violates the entire fairness standard both on the basis of price and process,” the legal complaint says.

A spokeswoman for News Corp. in London says the complaint is “without merit.”

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