Rupert Murdoch, the media mogul who built a vast empire spanning Australia to the United States, has stepped down as chairman of Fox Corp and News Corp. Ending a career of over seven decades, Murdoch hands over the reins to his son, Lachlan Murdoch, who will take on the role of sole chairman of News Corp and continue as the chair and CEO of Fox.
The transition solidifies Lachlan’s position as the leader of the media empire, putting to rest any questions regarding succession within the Murdoch family. However, Lachlan inherits the empire at a challenging time for the media industry. Traditional television viewership is declining, and news organizations are engaged in battles with tech companies over alleged copyright theft in the age of artificial intelligence.
In a memo to staff, Rupert Murdoch assured them that both companies are in robust health. Earlier this year, Murdoch abandoned a plan to merge Fox and News Corp after top shareholders rejected the proposal. Murdoch, who has significant stakes in both companies, will now become chairman emeritus of both firms.
Meanwhile, Fox News remains the top U.S. cable news network, exerting significant influence in American politics, particularly among Republicans. However, the network has faced legal challenges, including a defamation lawsuit from Dominion Voting Systems, which Fox settled by paying out $787.5 million.
Another lawsuit is pending from Smartmatic, a voting technology firm seeking $2.7 billion in damages for similar claims. Additionally, some shareholders have accused Fox Corp officers and directors of breaching their duties by allowing the company to become embroiled in defamation claims.
The news of Rupert Murdoch stepping down as chairman caused a rally in the stock market, with shares of Fox closing 3.2 percent higher and News Corp shares gaining 1.3 percent.
Rupert Murdoch has long desired his children to eventually take control of the empire. His son James was the CEO of Twenty-First Century Fox before the company sold its film and television assets to Walt Disney Co. After the sale, Lachlan was appointed CEO of the new Fox Corp.
While Lachlan Murdoch now oversees Fox Corp and News Corp, concerns may arise in the future regarding the transfer of voting shares from Murdoch to his four adult children. This could potentially create a scenario where three of the children outvote the fourth, leading to a battle over the future of the companies.
As the founder-mogul era comes to an end, media analysts acknowledge Murdoch’s significant contributions to the industry. However, they also highlight the negative impact of Fox News in amplifying toxicity in the U.S. political environment.
In conclusion, the transition of power within the Murdoch family signals a new era for the media empire. Lachlan Murdoch takes on the role of chairman, facing the challenges of a rapidly evolving industry and potential legal battles. The legacy of Rupert Murdoch’s leadership is acknowledged, but so are the controversies surrounding Fox News.
