Rupert Murdoch is taking on a new role at both News Corp and Fox as his son, Lachlan Murdoch becomes sole chair of both media giants, the companies said Thursday.
The Australian-born media tycoon — who has spent nearly seven decades building a pair of powerhouses that have transformed their industries — will be officially named chairman emeritus of each company at the next shareholders meeting in mid-November, the companies said in a statement.
Lachlan, 52, will succeed his 92-year-old father as the sole chair of News Corp and the executive chair and chief of Fox, according to the companies.
“For my entire professional life, I have been engaged daily with news and ideas, and that will not change,” Rupert Murdoch told colleagues in a Thursday morning memo to his workforce of 35,000.
“But the time is right for me to take on different roles, knowing that we have truly talented teams and a passionate, principled leader in Lachlan who will become sole Chairman of both companies.”
“We have every reason to be optimistic about the coming years — I certainly am, and plan to be here to participate in them,” Murdoch added on Thursday of his two companies, both of which topped profit estimates for their respective fourth quarters.
“Our companies are in robust health, as am I. Our opportunities far exceed our commercial challenges,” the media mogul added. “In my new role, I can guarantee you that I will be involved every day in the contest of ideas.”
Last month, News Corp said core earnings rose 8% to $341 million in the quarter, benefitting from its cost-cutting measures and a rise in digital subscriptions for its Dow Jones news and data services. Revenue for the fiscal year ended June 30 topped $9.9 billion as profits soared over $1.4 billion — “the second-highest profitability ever recorded by the company,” said News Corp CEO Robert Thomson.
Fox also outpaced Wall Street’s expectations when it reported fourth-quarter earnings of $375 million in August, up from $306 million in the same period one year ago. Fiscal-year income was $1.25 billion, a slight advance from 2022.
News Corp’s share price in early Thursday trades ticked nearly 1% higher, to $19.84, while Fox was enjoying a roughly 2% increase to $31.79.
In a statement, Lachlan congratulated his father “on his remarkable 70-year career.”
“We thank him for his vision, his pioneering spirit, his steadfast determination, and the enduring legacy he leaves to the companies he founded and countless people he has impacted. We are grateful that he will serve as Chairman Emeritus and know he will continue to provide valued counsel to both companies,” Lachlan added.
Lachlan, as the new boss at two of the most recognizable media companies in the world, will oversee Fox and News Corp’s far-reaching portfolio, which includes The Post — a legacy that Murdoch established in Australia in 1952 when he inherited his father’s Adelaide newspaper, The News.
“My father firmly believed in freedom, and Lachlan is absolutely committed to the cause,” Murdoch wrote. “Self-serving bureaucracies are seeking to silence those who would question their provenance and purpose. Elites have open contempt for those who are not members of their rarefied class. Most of the media is in cahoots with those elites, peddling political narratives rather than pursuing the truth.”
After inheriting his father’s Adelaide newspaper in 1952 from his father, Sir Keith Murdoch, and then Rupert Murdoch embarked on a path that would redefine the media landscape. In 1960, his company News Limited acquired the UK’s News of the World and The Sun in 1969.
By 1980, the once little-known Australian-based public corporation bought up the New York Post, New York Magazine, and The Village Voice in the US, and became News Corporation. In the UK, the company’s growth continued with the purchase of The Times in London and The Sunday Times in 1981.
In 1983, Murdoch’s News International became the majority owner of Satellite Television, the first satellite-to-cable channel in Europe. Within the next decade, Murdoch forayed into book publishing with an investment in HarperCollins.
In 1985, Murdoch expanded his interests in the film and television industry when he took ownership of 20th Century Fox and 25 TV stations across the US, paving the way for Fox Sports and News.
By 1996, the Fox network was the top-ranked television group in the country, a position it held for a record eight consecutive years, thanks to hits including “In Living Color,” “Married with Children,” “The X-Files,” and “The Simpsons.”.
On the heels of Fox News’ success, Murdoch brought 24-hour news TV across the pond, launching Sky News in the UK in 1988. In a landmark deal in 2007, Murdoch led News Corp’s acquisition of Dow Jones, which included the acquisition of The Wall Street Journal.
In 2013, Murdoch split up his business, keeping the publishing assets under the company’s original name, News Corp, and spinning off the entertainment assets into 21st Century Fox.
Lachlan Murdoch was named executive chairman of 21st Century Fox in 2015. Four years later, he played a key role orchestrating the mega-merger with Walt Disney, bringing Comcast into the negotiations as the company achieved a sale price of $71.3 billion.
The following year, Fox acquired Tubi for $440 million which, under Lachlan’s leadership, has become the No. 1 AVOD, or advertising-based video on demand service.
The streaming service was recently valued at $3 billion by Bloomberg Research.
Lachlan Murdoch led News Corp’s purchase of a controlling stake in REA Group.The $2.5 million cash deal to buy 61% of the Australia-based real estate advertising company has ballooned to be valued at $6.8 billion.
In 2019, Rupert Murdoch launched Fox Corp as a standalone, publicly traded company following the separation of 21st Century Fox in yet another transformative deal. Fox Corp. includes FOX News Media, FOX Sports, FOX Entertainment, FOX Television Stations and Tubi Media Group.
Last fall, Murdoch floated a deal to reunite News Corp and Fox. In January, he suspended the plans, saying they weren’t optimal for shareholders at the time.
Murdoch continues to be a major shareholder in the two companies. He and his family have a roughly 40% voting stake in News Corp and about a 44% voting stake in Fox Corp, according to securities filings.
Over the years, Rupert Murdoch has extended his influence to organizations like the American Australian Association, which was founded in 1948 by Sir Keith Murdoch and opened a Manhattan hub in March, fittingly named the “Murdoch Center.”
The headquarters serve as a cultural center and meeting place to assist the association’s mission of fostering stronger ties between the US and Australia.
This is a developing story. Check back for updates.
This story originally appeared on NYPost
