Michelle ThompsonHighlights:
1. Rupert Murdoch is resigning from his role as the chairman of both News Corp. and Fox Corp.
2. This development coincides with the 92-year-old media mogul’s empire, which encompasses Fox News, preparing for the 2024 election.
3. In a previous instance this year, Fox made a payment of $787.5 million to resolve defamation allegations brought by the voting technology firm Dominion.
Rupert Murdoch is stepping down as chairman of the board for both Fox Corp. and News Corp., with this transition set to take effect in November. At that time, Murdoch, who is 92 years old, will assume the title of chairman emeritus at both companies. Lachlan Murdoch, one of his sons, will become the sole chairman of News Corp. while continuing to serve as Fox Corp.’s executive chair and CEO.
In a message to employees, Rupert Murdoch expressed confidence in the health of his companies and his own well-being, emphasizing his optimism for the years ahead. He noted that the struggle for freedom of speech and thought is currently intense.
Rupert Murdoch’s departure follows a turbulent year for Fox’s TV network, marked by a substantial $787.5 million settlement related to Dominion Voting Systems’ defamation lawsuit over false claims regarding the 2020 election. Murdoch’s continued involvement with Fox News came under scrutiny during the Dominion lawsuit, as some of the network’s anchors were found to have echoed false claims in the aftermath of the election.
Murdoch had been working remotely from his Montana home since July 2022, rather than at Fox or News Corp. offices, as reported in securities filings. Additionally, Fox News faced the departure of top talent Tucker Carlson earlier in the year, resulting in a temporary dip in ratings.
Rupert Murdoch’s departure also coincides with the approaching U.S. presidential election in 2024. News Corp. owns publications such as The Wall Street Journal and New York Post, while Fox is the parent company of right-leaning TV networks Fox News and Fox Business.
Rupert Murdoch’s media career began nearly 70 years ago in 1954 when he took control of News Ltd., which owned the second-largest newspaper in Adelaide, Australia. Over the years, he expanded his media empire to include tabloids in Britain and the United States. In the 1980s, he ventured into television and acquired a 50% stake in Twentieth Century Fox in 1985. He became a U.S. citizen to meet the requirements for owning TV stations in the country.
In 1996, Murdoch launched the Fox News Channel, which has since become a top-rated cable network. Despite his departure from these leadership roles, Rupert Murdoch emphasized his continued engagement with news and ideas.
Rupert Murdoch had explored the idea of reuniting Fox and News Corp. about a year ago, which would have consolidated leadership within his media empire and reduced costs. However, he abandoned this proposal in January, citing its suboptimal impact on shareholders. The Murdoch family trust holds approximately 40% of the voting rights in both companies, and their fortune is estimated to be over $17 billion as of 2023.
Both Fox and News Corp. have adapted to changing media landscapes, focusing on news, sports, and streaming through platforms like Tubi, as opposed to direct-to-consumer subscription streaming services.
The Murdoch family’s influence in media has been the subject of numerous books and even inspired the HBO series “Succession.” Michael Wolff’s upcoming book, “The Fall: The End of Fox News and the Murdoch Dynasty,” is expected to provide further insights into the Murdoch family, U.S. politics, and Fox News.
Murdoch’s full note to employees:
Dear Fellow Team Members,
I want to inform you of my decision to transition into the role of Chairman Emeritus at Fox and News. Throughout my entire career, I have been deeply involved in the world of news and ideas, and that fundamental passion remains unchanged. However, I believe the time has come for me to take on different responsibilities, knowing that we have exceptionally talented teams in place and a dedicated, principled leader in Lachlan, who will assume the sole Chairman role for both companies.
I want to emphasize that neither excessive pride nor false modesty is admirable traits. Nevertheless, I take genuine pride in our collective accomplishments over the decades, and I owe a great deal to my colleagues. Your contributions to our success, which may sometimes go unnoticed by the outside world, are sincerely appreciated by me. Whether it’s the truck drivers delivering our newspapers, the diligent cleaners working late after we’ve left the office, the dedicated assistants supporting us, or the skilled individuals behind the cameras and computer code, our success and positive impact on society would be diminished without your unwavering dedication day in and day out.
Our companies are thriving, as am I. Our opportunities far outweigh our commercial challenges, and there is every reason to be optimistic about the years ahead – a sentiment I wholeheartedly share, and I plan to actively participate in them. Yet, the struggle for freedom of speech and, ultimately, freedom of thought has never been more intense.
My father held a strong belief in freedom, and Lachlan is equally committed to this cause. Self-serving bureaucracies are attempting to stifle those who dare to question their origins and objectives. The elite class openly disdains those who do not belong to their exclusive circle. Much of the media aligns with these elites, promoting political narratives instead of pursuing truth.
In my new role, I can assure you that I will remain actively engaged in the battle of ideas. Our companies are like communities to me, and I will continue to be an involved member of this community. I will scrutinize our broadcasts, read our newspapers, websites, and books with keen interest, and provide you with thoughts, ideas, and guidance. When I visit your countries and companies, expect to see me in the office even on late Friday afternoons.
I eagerly anticipate encountering you wherever you work and whatever your responsibilities entail. I urge you to seize this tremendous opportunity to contribute to making the world we inhabit a better place.
