Rupert Murdoch Steps Down as Chairman of Fox Corp and News Corp, Son Lachlan to Take Over
Rupert Murdoch, the media mogul behind Fox Corp and News Corp, has announced his resignation as chairman of both companies, signaling the end of a storied career spanning over seven decades. His son, Lachlan Murdoch, will succeed him as the sole chairman of News Corp while retaining his position as the chair and CEO of Fox.
The transition comes at a challenging time for the media industry, as traditional television viewership declines and news organizations grapple with tech companies over copyright theft in the era of artificial intelligence. However, Rupert Murdoch expressed confidence in the robust health of both companies in a memo to staff on Thursday.
Earlier this year, Rupert Murdoch abandoned a plan to merge Fox and News Corp, which was met with resistance from top shareholders who believed it undervalued the company. Despite stepping down as chairman, Murdoch will assume the role of chairman emeritus for both entities.
The succession of Lachlan Murdoch solidifies his position as the leader of the media empire, putting to rest any doubts about succession within the Murdoch family. Lachlan will take the reins as the media industry faces unprecedented challenges and scrutiny.
Fox News, the top U.S. cable news network, will continue to play an influential role in U.S. politics, particularly among Republicans. However, Fox recently settled a defamation lawsuit with Dominion Voting Systems for $787.5 million, avoiding a trial that would have thrust the company into the spotlight over false vote-rigging claims during the 2020 U.S. presidential election.
Despite this settlement, Fox still faces a lawsuit from voting technology firm Smartmatic, which is seeking $2.7 billion in damages over similar claims. In addition, shareholder lawsuits accusing Fox Corp officers and directors of breaching their duties by allowing the company to become embroiled in defamation claims are still pending.
While Rupert Murdoch has been praised for producing important news worldwide, he has also been criticized for amplifying toxicity in the U.S. political environment. Brian Wieser, a media analyst at advisory firm Madison & Wall, acknowledged the impact of Murdoch’s enterprises but noted the negative consequences as well.
The news of Rupert Murdoch stepping down had a positive impact on the stock market, with shares of Fox ending the day 3.2% higher and News Corp gaining 1.3%.
The Murdoch family has long desired to pass on control of the media empire to their children. Rupert’s son James previously served as the CEO of Twenty-First Century Fox before the company sold its film and television assets to Walt Disney Co. James subsequently founded the private investment firm Lupa Systems, while Lachlan took over as CEO of the newly formed Fox Corp.
However, Rupert Murdoch’s death could potentially lead to a power struggle among his children. Murdoch controls both News Corp and Fox Corp through a family trust, with his four adult children from his first two marriages having a stake in the trust. Upon his death, these shares could create a scenario where three siblings outvote the fourth, potentially sparking a battle over the future of the companies.
Concerns about Rupert Murdoch’s health have also been raised in recent years. Despite suffering a serious back injury in 2018, he has been making appearances at the offices of Fox and News Corp, indicating his continued involvement.
Former News Corp executive Jonathan Miller remarked that the departure of Rupert Murdoch marks the end of an era dominated by founder-moguls in the media industry. Now, the reins have been passed to executives who have risen through the ranks.
Overall, the transition of power within the Murdoch family and the media empire they have built raises questions about the future trajectory and challenges facing the industry. As Lachlan Murdoch assumes the role of sole chairman, all eyes will be on him to navigate the rapidly evolving media landscape with integrity and innovation.