ISTANBUL 

Business magnate Rupert Murdoch has withdrawn a proposal to explore a possible merger of his media companies Fox and News Corp, according to a statement released Tuesday. 

"In withdrawing the proposal, Mr. Murdoch indicated that he and Lachlan K. Murdoch have determined that a combination is not optimal for the shareholders of FOX and News Corp at this time," Fox said.

"As a result of this action, the Special Committee of the Board of Directors of Fox Corporation has been dissolved. The Board would like to express its appreciation for the Special Committee’s efforts on this matter," it added.

After the announcement, the stock price of Fox rose 1%, while News Corp shares fell 1.1% in after-hours trading on the Nasdaq.

Murdoch and his family own around a 42% voting stake in Fox and 39% in News Corp.

The proposed merger aimed to combine some of News Corp's operations in the US, UK and Australia with Fox's American brands Fox News and Fox Sports.