News Corp.'s board of directors temporarily suspended the voting rights of a portion of shares held by non-U.S. citizens to comply with U.S. law, according to a regulatory filing.
The media conglomerate Wednesday suspended the half of the voting rights of foreign citizens who hold Class B shares in News Corp. The company said its board took the action to comply with U.S. law, which limits foreign ownership of broadcast licenses to no more than 25%.
The decision would affect Saudi Prince Alwaleed bin Talal bin Abdulaziz, who holds more than 56 million Class B shares.
News Corp.'s 27 owned and operated television stations and Fox Broadcasting Co. are lucrative assets, together generating $4.8 billion in revenue and $681 million in operating profit in 2011.
The board determined that about 36% of the company's Class B stock was held by non-U.S. shareholders, and immediately suspended the voting rights of 50% of this class of stock held by foreigners.