Rupert Murdoch pulled the plug on a proposal to bring back together his News Corp and Fox Corp., saying the merger "is not optimal" for the firms' shareholders at this time.

Last autumn, Murdoch proposed combining News Corp and Fox Corp., about a decade after they broke off. The boards of the two firms stated on Tuesday that they received a letter from Murdoch retracting the deal.

Fox Corporation owns Fox News, the Fox broadcast network, local television stations, and the Tubi streaming service. Dow Jones is the parent corporation of The Wall Street Journal, as well as HarperCollins Publishers and news organizations in the United Kingdom and Australia.

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According to people familiar with the issue, News Corp has considered alternatives to a merger with Fox Corp., such as selling its digital real-estate assets. In a securities filing, News Corp stated it is in talks with CoStar Group Inc. to sell Move Inc., which operates Realtor.com. News Corp also controls roughly two-thirds of REA Group Ltd, an Australian digital real-estate firm.

Irenic Capital, a stakeholder, wrote to News Corp's board that "a combination with Fox would not suit News Corp's strategic aims." The letter further stated that "Fox is facing lawsuits that could cost billions of dollars."

"This is the right decision," Irenic Capital co-founder Adam Katz said in a statement Tuesday. "Looking ahead, News Corp has the potential to produce significant wealth for its shareholders."

It is worth noting that Murdoch is the executive chairman of News Corporation and the chairman of Fox Corporation. Lachlan Murdoch is the co-chairman of News Corporation and the executive chairman and CEO of Fox. According to the firms' financial filings, the Murdoch family trust owns around 39% of News Corp and approximately 42% of Fox Corp.

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