By Svea Herbst-Bayliss
NEW YORK (Reuters) – News Corp (NASDAQ:NWSA) said on Wednesday that investors rejected a proposal by activist investor Starboard Value to break the Murdoch family's grip on the publisher by ending a dual class voting structure.
The company said the hedge fund's non-binding shareholder resolution fell short of securing the number of votes needed to pass at today's annual meeting.
The Murdoch family controls more than 40% of the voting shares, making it a tough battle for the hedge fund to win from the start.
Starboard did not immediately return calls or emails requesting comment.
Starboard Value, run by Jeffrey Smith, submitted the proposal earlier this year to challenge Rupert Murdoch's control over the media empire that publishes the Wall Street Journal, Reuters reported in September.
The proposal won support from powerful proxy advisory firms and a number of other investors who argued that good corporate governance dictates each share should have one vote.
News Corp, however, urged investors to vote against Starboard's proposal and argued that the structure promotes stability and that the company has thrived under the current structure.
Last year, Starboard called on News Corp to spin off its digital-real estate unit to unlock value for shareholders.
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