21st Century Fox: ValueAct Capital takes $1bn stake in Murdoch’s entertainment company
US hedge fund ValueAct Capital has taken a $1bn stake in Rupert Murdoch’s 21st Century Fox it’s been revealed, less than a week after the entertainment company failed in its $80bn bid to buy Time Warner.
ValueAct chief executive Jeffrey Ubben told Reuters "We support (Fox's) stand-alone plan and (believe) that it would drive the stock higher,” but said it did see a possible Time Warner deal further down the road.
The $1bn stake is said to be around 30 million shares of mostly class B voting stock, Bloomberg reports, which would represent around a 1 per cent share in 21st Century Fox. The investment was made during the time Fox's bid for Time Warner was still in play, CNBC reports.
The stake represents ValueAct’s fifth largest investment and the firm, which is know for gaining a seat on Microsoft’s board with less than a 1 per cent share in the tech firm.
The activist investment firm has also had significant involvement in pharma company Valeant which recently attempted a takeover of Botox-maker Allergan.
The Murdoch family controls a 39 per cent share of voting power at the entertainment company.
21st Century Fox declined to comment.