Rupert Murdoch has withdrawn his proposal to re-combine Fox Corp and Information Corp.

Fox mentioned Tuesday its board acquired a letter from Murdoch, its chairman, and his son and Fox CEO Lachlan Murdoch that “decided {that a} mixture will not be optimum for the shareholders” of both of the businesses on the time.

The withdrawn proposal comes as Information Corp has been in superior discussions to promote its stake in Transfer Inc., the guardian firm of Realtor.com, to industrial actual property firm CoStar Group, in response to an individual accustomed to the matter.

“CoStar Group constantly evaluates M&A alternatives throughout a broad vary of firms to maximise shareholder worth,” mentioned a spokesperson for the corporate, including it would not touch upon market rumors or hypothesis.

A Information Corp spokesperson did not reply to remark. Reuters first reported the deal talks.

Along with Wall Avenue Journal Writer Dow Jones, Information Corp additionally owns belongings corresponding to e book writer HarperCollins and the New York Put up. In 2014, Information Corp acquired an 80% stake in Transfer. REA Restricted Group, an Australian actual property enterprise that Information Corp holds a 61.6% curiosity in, acquired the remaining 20% stake in Transfer.

Information Corp CEO Robert Thomson advised staff Tuesday the choice to name off the proposed deal would haven’t any impression on staff, in response to a memo reviewed by CNBC. He additionally urged them to maintain tight-lipped concerning the matter.

“As I suggested firstly of this course of, it’s best to not speculate on hypothesis, and so in case you do hear from any media, shareholders, clients or others, please alert the communications staff in your online business,” Thomson wrote.

In October, the businesses mentioned that they had shaped a particular committee to contemplate the deal.

A mix of the 2 firms would have unified management in Murdoch’s empire and lower prices at a time when the viewers is shrinking for each print and TV media. Information Corp owns Wall Avenue Journal writer Dow Jones. Fox, with what was left over from the $71.3 billion Twenty-First Century Fox sale to Disney in 2019, owns right-wing networks Fox Information and Fox Enterprise, which is a CNBC competitor.

Murdoch had break up up the businesses in 2013. The Murdoch household belief controls about 40% of the voting rights of each firms.

On the time, the considering behind the reunion would have been to easily give the merged firm better scale to compete at a time when media firms are competing for subscribers and digital promoting spending, CNBC beforehand reported.

The potential merger had confronted opposition from shareholders in latest months, who did not imagine a merger would present the true worth of Information Corp. if it merged with Fox.

Some shareholders, like Unbiased Franchise Companions, believed the merger would not have realized the total potential worth of Information Corp, and different alternate options, corresponding to a breakup of Information Corp, ought to have been thought of. The London agency is likely one of the largest shareholders in each Information Corp and Fox that is not Murdoch.

Irenic Capital Administration was one other shareholder that pushed again on the proposed merger, saying Fox did not serve Information Corp’s strategic objectives. Each Irenic and Unbiased Franchise imagine Information Corp shares are undervalued. Class A shares of Fox closed at $32.67 on Tuesday, whereas Information Corp’s Class A shares closed at $19.53.

–CNBC’s Gabrielle Fonrouge contributed to this text.