This is very true for public companies. If the correct solution (say, maximum profits over the next 100 years) for newscorp is to become 1/3 its current size,

This is very true for public companies. If the correct solution (say, maximum profits over the next 100 years) for newscorp is to become 1/3 its current size, it probably can't do this. As a public company it would probably collapse completely instead. The best it can do is keep taking chances on growth even if they are less rational then alternatives.