Terry McCrann
Herald Sun
March 26 2014
THE return of the Murdoch siblings to the very top of Rupert Murdoch’s global media empire is a truly stunning move.
Lachlan Rupert and James Murdoch (l/r)
It signals in the most clear-cut and public fashion the nomination of a direct successor to Murdoch, for the first time in his 60-plus years as absolute master of his News Corp - and now also 21st Century Fox - domains.
That successor is his eldest son Lachlan; but critically, in partnership with his brother James.
Lachlan takes the senior role, but as a non-executive.
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McCRANN: MURDOCH MOVES SIGNAL VISION FOR THE FUTURE
He becomes co-chairman with his father of both companies in the empire - the main one, Fox, centred in New York, which covers the US TV and entertainment operations; and the separate News Corp, which holds all the print media businesses in Australia, the United Kingdom and the US.
Murdoch senior remains the clear CEO of Fox.
He is executive co-chairman, Lachlan is non-executive co-chairman.
And the same applies at News Corp. This is the first time since he assumed the role and title of chairman more than 20 years ago that Murdoch has shared it.
The signal is unambiguous.
The second part of the appointments was that of Murdoch’s younger son, James, to the role of co-chief operating officer (one down from CEO) with the top non-Murdoch in the empire, Chase Carey, of the main Fox company.
Unlike Lachlan’s roles, this is a hands-on executive position.
Also unlike Lachlan’s appointments, that of James is only to Fox.
Robert Thomson remains sole CEO of the print company, News Corp.
The clear signal is of a succession built on a partnership between Lachlan and James, with Lachlan as non-executive chairman and James as the future CEO.
Although clearly driven by Murdoch senior, the signal is also of this being agreed to by the boards of both companies. And by Carey, who has become critically important in Fox’s success.
Lachlan’s move also has major implications for media in Australia. It immediately opens up the question of the future of Network Ten; and of other companies more widely.
He steps down as non-executive - actually close to being a de facto executive - chairman of Ten and as a director. But for the moment, remains one of its major shareholders.
There has been speculation that when the media ownership rules are relaxed - if they are - News Corp might move to buy Ten.
A key reason would be to give the partly News Corp-owned Foxtel direct access to key sports programming.
But the exact opposite remains possible: the Murdochs quitting Ten.
The media business has just suddenly got very, very interesting.
INK IN HIS VEINS, JUST LIKE HIS FATHER Damon Kitney
LACHLAN Murdoch, like his father, has ink in his veins.
After years of investing in television, radio and even Indian cricket teams, Murdoch is back at the helm of something he loves — a newspaper company.
Not since his time at the New York Post, where he was publisher from 2002 to 2005 and increased its circulation by more than 40 per cent, has he has been at the pointy end of the board table of a company with significant print media assets.
Now, as non-executive co-chairman of News Corp, he wants to drive the company’s transition to a digital future. Many credit him for News Corp’s 60 per cent investment in digital real estate portal REA more than a decade ago, which has delivered big profits.
As non-executive co-chairman of 21st Century Fox, he will oversee key assets he ran in the mid-2000s, such as the Fox network of television stations in the US.
That was before his famous decision to flee New York in 2005, when he resigned from executive roles in the company to return to Australia to set up his private investment vehicle, Illyria. He has continued to serve on the News Corp and 21st Century Fox boards.
Back in Sydney, he bought a 9 per cent stake in regional free-to-air TV station Prime Media in 2009, selling it for a profit in 2012. The same year he spent $110 million buying half of DMG Radio Australia, operator of the Nova radio network, taking full ownership three years later. Nova has become Australia’s number one national FM network.
In 2006, Rupert Murdoch said he wanted one of his children to succeed him. “I think that’s a natural desire,” he said. “They’ve got to prove themselves too.”
Today his wish is one step closer.
