The media tycoon has dropped a proposal to reunite the two parts of Rupert Murdoch’s empire.
The 91-year-old and his son Lachlan floated the idea of merging News Corp, the US firm behind the Wall Street Journal, HarperCollins and The Times, and Fox Corporation, owner of Fox News.
The two companies split in 2013, a move aimed at drawing a line between the then-struggling publishing business and its entertainment division.
News Corp’s board said last year it had formed a committee to independently assess whether a merger of the two companies was in the interests of shareholders.
Several top investors have since spoken out against the idea, suggesting it may undervalue News Corp.
This Murdoch Families control approximately 40% of entities.
In some quarters, the proposed merger is seen as a potential succession plan by Murdoch Sr. to consolidate the power of his son as Fox CEO, although the company dismissed the prospect as “absurd” in November.
News Corp said: “The company’s board has received a letter from K Rupert Murdoch withdrawing his proposal to explore a potential merger between News Corp and Fox.
“In withdrawing the proposal, Mr Murdoch stated that he and Lachlan K Murdoch had determined that a merger at this time would not be the best option for News Corp and Fox shareholders.”
News Corp. is in talks to sell its stake in realtor.com operator Move to CoStar Group for about $3 billion, Reuters reported.