Rupert Murdoch Steps Down as Chairman of News Corp and Fox, With Son Set to Take Over
Key takeaways
- Ruper Murdoch has stepped down as chairman of Fox and News Corp
- Son Lachlan will take over the top job
- Shares in Fox and News Corp closed 3.1% and 1.5% higher
We knew the day was coming, but it’s still a surprise when one of the world’s most powerful men decided to step down. Logan Roy — sorry, Rupert Murdoch — is leaving his roles as chairman of Fox and News Corp, with son Lachlan Murdoch set to take the helm.
Fox and News Corp’s share prices were both up at the news, likely due to relief from Wall Street that a successor had been appointed. Don’t expect any dramatic Succession-style boardroom showdowns here. Let’s get into the details of why Murdoch is stepping down and how the markets took the news.
What’s happening with Fox and News Corp?
It’s the end of an era: controversial media mogul Rupert Murdoch is stepping away from the family businesses, leaving his son to run them. Except the family business is one of the world’s biggest news corporations.
Murdoch, 92, will transition into a chairman emeritus position at News Corp and Fox, with son Lachlan Murdoch taking over as sole chairman for both companies. He’s set to leave the position as soon as November, calling his son a “passionate, principled leader”.
Rupert’s son Lachlan tried not to sound too overjoyed at the news he was finally getting a shot as chairman. “We are grateful that he will serve as Chairman Emeritus and know he will continue to provide valued counsel to both companies,” he said.
Murdoch has had an extraordinary career, taking over News Limited in the 1950s and building a news empire. News Corp owns the Times of London, Wall Street Journal, Daily Mail and other publications.
“I am truly proud of what we have achieved collectively through the decades, and I owe much to my colleagues, whose contributions to our success have sometimes been unseen outside the company but are deeply appreciated by me,” Murdoch wrote.
The Murdoch family’s voting shares are tied up in a trust that Murdoch controls. Four of his six children will take over the trust when he dies.
What was the market reaction?
Fox’s share price closed 3.1% higher on Thursday, while News Corp closed nearly 1.5% higher, having climbed as much as 3% during trading. So far this year, Fox has added 2.74% to its stock value, and News Corp has grown by over 8%. However, both stocks have since fallen during early Friday trading.
That might be a sign of bumping back down to reality from investors. Fox owns the controversial right-wing news channel Fox News, which has been slapped with two massive lawsuits in the wake of its 2020 election coverage.
There was also the very public breakdown of sons Lachlan and James Murdoch’s relationship, which apparently left shareholders questioning Rupert’s succession plan.
The bottom line
The Succession-style drama of Rupert Murdoch’s legacy over his news empire is something to be revered. We’re sure his critics will be pleased the man is finally stepping down, but there’s no denying the passion and hard work that goes into building a successful news conglomerate.
As for investors, initial positivity over the news appears to be fading. It could be the case that son Lachlan has an uphill battle ahead to fill his father’s shoes.
