Murdoch to step down, Lachlan to inherit media empire
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Rupert Murdoch hands over the empire to his eldest son, Lachlan Murdoch, and names him sole executive.
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Lachlan Murdoch, left, and Rupert Murdoch attend the TIME 100 Gala in New York on April 21, 2015. (AP)
Lachlan Murdoch became the sole executive in charge of Rupert Murdoch's global media empire after the latter announced he would be stepping down as cited by The New York Times.
Murdoch, the father, will be stepping down as chairman of Fox and News Corp in November, Fox News reported earlier on Thursday.
It cited a letter written by 92-year-old Murdoch in which he addressed his colleagues, saying, "I am writing to let you all know that I have decided to transition to the role of Chairman Emeritus at Fox and News."
"For my entire professional life, I have been engaged daily with news and ideas, and that will not change," he said, before adding, "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."
“Our companies are in robust health, as am I. Our opportunities far exceed our commercial challenges. We have every reason to be optimistic about the coming years," he added.
Rupert Murdoch Resigns As Fox Chief, Hands Over Control To His Son
— NDTV (@ndtv) September 21, 2023
Read his letter to Fox employees👇 pic.twitter.com/Pwzo5ZGRz8
On his part, the 52-year-old Murdoch who will be assuming the role of sole chairman, said, in a release put out by the company on Thursday, that “on behalf of the Fox and News Corp boards of directors, leadership teams, and all the shareholders who have benefited from his hard work, I congratulate my father on his remarkable 70-year career," adding, “We thank him [Rupert Murdoch] 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."
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Significantly, The Guardian reported on some family drama over the inheritance of the media empire. The family split over "succession of the patriarch," said The Guardian, resulted in James Murdoch, the youngest son, walking away from the business, which he was heavily involved in, as decades of in-fighting led to Lachlan inheriting Rupert's media empire.
On her part, Elizabeth, Rupert’s daughter, now serving as the executive chairman of the global TV and film production and development company, Sister, headquartered in London with offices in Los Angeles, has actively avoided the succession war since its onset.
With this announcement, Rupert Murdoch's seven-decade legacy comes to an end, but it could see the light once again through his son's leadership decisions as he inherits his father's media empire.
Murdoch’s company, News Corp, which has been headquartered in New York, owns hundreds of news outlets in the US, UK, and across the world. Across the US, The Wall Street Journal, The New York Post, and book publisher HarperCollins are all owned by the company, which also owns Fox News, through the Fox Corporation, and subsequently, Sky News Australia.
When it comes to the UK, Murdoch owns The Sun and The Times, both of which are dailies, as well as the News of the World weekly. In Australia, News Corp owns The Daily Telegraph, the Herald Sun, and The Australian.
Previously, and until 2018, Murdoch owned British-based Sky News, and until 2019, he owned 21st Century Fox, the film company.
News Corp profits dive 75% as Murdoch-owned firm hints at AI future
Earlier in August, News Corp made headlines as profit was saved by AI alternatives. Although Rupert Murdoch's News Corporation had a sharp 75% decline in full-year profit, it still sees prospects as it increases the usage of content created by AI to cut costs.
The US-listed media conglomerate reported a net profit of $US187 million ($A287 million) for the fiscal year, down from the previous year's record of $US760 million. The company has mastheads in the US, UK, and Australia, as well as book publishers, subscription television, and real estate advertising assets.
The media business offered an optimistic appraisal of the potential of generative AI, capable of producing text, photos, video, and other material, to boost revenues. News Corp generated more than half of its revenue from digital streams for the first time.
"That momentum is surely gathering pace in the age of generative AI, which we believe presents a remarkable opportunity to create a new stream of revenues while allowing us to reduce costs across the business," said Robert Thomson, the News Corp chief executive.
"We are already in active negotiations to establish a value for our unique content sets and (intellectual property) that will play a crucial role in the future of AI."
The company's Australian arm recently revealed that it was utilizing generative AI to produce 3,000 articles every week.
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