During a company review, News Corp found voting stock held by foreign investors had risen above the 25 percent limit set by the Communications Act of 1934, the paper said.
To deal with the breach, the media company will suspend 50 percent of the voting rights of B class voting shares held by non-American shareholders. The suspension will last until the company is in compliance with the ownership limits, the paper said.
News Corp owns Dow Jones & Co, publisher of the Wall Street Journal.
News Corp would not comment on the report.
(Reporting by Sakthi Prasad and Ranjita Ganesan; Editing by Hans-Juergen Peters)