Rupert Murdoch has stepped down as the chairman of Fox Corp (FOXA.O) and News Corp (NWSA.O), ending a more than seven-decade career during which he created a media empire spanning from Australia to the United States.
Rupert Murdoch’s News Corp new sole chairman will be, Lachlan. Lachlan Murdoch will also continue as the Fox chairman and CEO, the companies said on Thursday. The transition solidifies Lachlan’s role as the leader of the media empire, putting to rest questions of succession within the Murdoch family.
Rupert Murdoch retires
Lachlan takes over the Rupert Murdoch’s Fox and News Corp Empire as the media industry is battered by challenges ranging from the decline in traditional television viewership, to news organizations battling tech companies over alleged copyright theft in the age of artificial intelligence.
In a memo to staff Thursday, Murdoch wrote: “Our companies are in robust health, as am I.”
Earlier this year Murdoch, 92, scrapped a plan that would have reunited his media empire by merging Fox and News Corp, after several top shareholders rejected the proposal on the grounds that it would fail to realize the full value of the company.
Murdoch, who has near-controlling stakes in both companies, will be appointed chairman emeritus of both Fox and News Corp.
The executive transition coincides with the annual meeting of shareholders for Fox and News Corp in mid-November.
Fox News continues to be the number one U.S. cable news network, playing an influential role in U.S. politics, particularly among Republicans who prize Fox’s conservative-leaning audience.
Stock update
Shares of Fox ended the day 3.2% higher after the news of Murdoch stepping down as CEO of Fox and News Corp. News Corp shares gained 1.3%.
Rupert Murdoch succession
Murdoch, who has six children, has long desired his children to eventually take the reins of the empire. His son James had been CEO of Twenty-First Century Fox before the company’s decision to sell its film and television assets to Walt Disney Co (DIS.N). Sold for $71.3 billion a deal that closed in 2019.
James then channeled proceeds from the deal into a private investment firm, Lupa Systems. Lachlan was appointed CEO of the new Fox Corp.
Upon Murdoch’s death, his other children could challenge Lachlan’s power. Murdoch controls News Corp and Fox Corp through a Reno, Nevada-based family trust. This firm holds a roughly a 40% stake in voting shares of each company. He also holds a small number of shares of the companies outside the trust.
The transfer of News Corp and Fox Corp voting shares from Murdoch to his four adult children could create a scenario in which three of the children could out-vote a fourth. This could potentially set up a battle over the future of the companies, even as Lachlan Murdoch now oversees Fox Corp. and News Corp.
End of an era
Concerns about Rupert Murdoch’s health have dogged him in recent years. In 2018, he suffered a serious back injury after he fell on his son Lachlan’s yacht, according to several employees.
Over the past year, Rupert Murdoch has started appearing back at Fox and News Corp’s offices in London and New York, employees say.
“It’s the end of the founder-mogul era,” said former News Corp executive Jonathan Miller, who worked alongside the Rupert Murdoch.
A generation of media titans, including Sumner Redstone, Ted Turner and John Malone, shaped the modern industry, Miller said. Now, the mantle has been passed from founders to executives who have risen through the ranks.
