Activist shareholder buys up News Corp stake, seeks shake-up: WSJ

The news: Hedge fund Starboard Value has built a stake in News Corp and plans to push for a shake-up of the media giant's structure, governance and strategy, the Wall Street Journal reported, citing unnamed sources. The New York-based activist shareholder believes News Corp is trading at a discount to its value, and it reportedly plans to recommend a spin-off of News' real estate divisions.

The numbers: Starboard's exact stake remains unknown. News Corp's chair emeritus Rupert Murdoch and his family have an approximate voting stake of 40%. Starboard also reportedly plans to push News Corp to scrap its dual-class structure, which gives the Murdochs extra voting power.

The context: Last month Rupert Murdoch stepped down as executive chairman of News Corp, naming his son Lachlan to succeed him. Lachlan is continuing in his role as Fox Corp executive chair and chief executive. Starboard is known for seizing the board of Olive Garden owner Darden Restaurants almost a decade ago, preceding a 48% lift in the restaurant owner's share price.