Lachlan Murdoch Solidifies Control of Family’s Media Empire
Two days after solidifying control of his family’s empire, Fox Corp. Chief Executive Lachlan Murdoch touted the strength and newfound stability of their media business. Murdoch spoke briefly Wednesday at the Goldman Sachs Communacopia + Technology Conference, a fireside chat cut short because of Murdoch’s late arrival in San Francisco thanks to a weather delay. Instead of speaking for about 40 minutes, Murdoch appeared for just about 10 minutes.
The session followed this week’s $3.3-billion settlement of the Murdochs’ bitter succession feud, which handed Lachlan the keys to the kingdom. Rupert Murdoch’s trust will be replaced with new ones that benefit his six children. In the coming weeks, the family’s controlling News Corp. and Fox shares will pass from Rupert to Lachlan, sealing the scion’s status as one of the world’s most influential moguls.
A New Era for Fox
The 54-year-old executive already was overseeing Fox News, the Fox broadcast network and the free video service Tubi as CEO of Fox since 2019. As chairman of News Corp., Lachlan Murdoch is perched atop the publishing firm that includes the Wall Street Journal, New York Post, the Times of London, HarperCollins publishing house and newspapers in his family’s native Australia. Now his inheritance and legal standing is etched through 2050.
“It’s great news for investors,” Murdoch said of the family settlement. “It gives us a clarity about our strategy going forward — and shows that our strategy will be consistent.” The settlement was reached after months of negotiations among representatives of Rupert Murdoch’s children. Three of his offspring — Prudence MacLeod, Elisabeth Murdoch and James Murdoch — had tried to block the elder Murdoch’s plan to consolidate Lachlan’s power — sending the dispute to a Nevada probate court.
Analysts Weigh In
Analysts said they don’t expect major changes at Fox, particularly at Fox News, which will continue its conservative drumbeat and support of President Trump. “We expect the strategy will likely stay the course,” Robert Fishman, a MoffettNathanson research analyst, wrote in a report. “Fox’s emphasis on its differentiated linear assets — namely sports and Fox News — should continue while at the same time balance a streaming push with its recently-launched Fox One and rapidly growing Tubi.”
During the Goldman Sachs conference, Murdoch sounded an upbeat note about last month’s launch of its latest streaming service, Fox One, which delivers news and sports to consumers. “I don’t want to read too much into our success and our data of the last few weeks but suffice to say its take-up [rate] has exceeded our expectations,” Murdoch said.
Rupert Murdoch and Lachlan Murdoch at the 2018 Allen & Co. Media and Technology Conference in Sun Valley, Idaho. (Bloomberg/Bloomberg via Getty Images)
Market Reaction
Fox shares have fallen about 8% since Monday when the settlement was announced, after the company said the Murdochs planned to price the shares they would sell at $54.25. Shares were trading at $52 on Wednesday.
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