Rupert Murdoch has withdrawn his proposal to merge WSJ parent company News Corp. and Fox News parent company Fox Corp.  Murdoch proposed re-combing the two parts of his media empire in October and established special board committees to review the deal. Murdoch said the transaction isn't optimal for the company's shareholders at this time. Murdoch is the executive chairman of News Corp. and chairman of Fox Corp. Lachlan Murdoch, his son, serves as co-chairman of News Corp. and executive chairman and chief executive of Fox. According to securities filings, the Murdoch family trust holds a ~39% voting stake in News Corp. and a ~42% voting stake in Fox Corp. According to sources, Murdoch believed combining both firms would give the new entity a stronger balance sheet to pursue acquisitions. News Corp has explored other strategic options besides the proposed merger with Fox Corp., including selling its digital assets. The company held talks to sell Realtor.com's parent company Move Inc. to CoStar Group. News Corp. shares rose 5.4%, and Fox Corp. rose more than 2% by midday trading on Tuesday.