Shares of Fox Corporation and News Corp, two of Rupert Murdoch's media giants, experienced a significant jolt on Thursday, reflecting the impact of the media mogul's decision to step down from his long-held position. Ouch. That has to hurt.
In a move that seems to breathe new life into the conservative-leaning news conglomerate, the stocks surged, signaling a potential resurgence for these media entities. How Murdoch feels about his companies’ stock surging on news that he’s getting out of the game is anyone’s guess.
So Long!
Fox Corp, the parent company of Fox News and the Fox broadcasting network, witnessed an impressive uptick of nearly 3.5% during the day, with share prices climbing to just over $32. This remarkable surge stands as the company's most substantial single-day increase by percentage on Wall Street in the past six weeks. Perhaps Murdoch should have gone long ago?
Meanwhile, News Corp, the parent of Wall Street Journal and New York Post, didn't lag behind. Its stock prices surged by nearly 1.5% to just under $20 per share, marking the company's most significant single-day increase in over a month.
Murdoch's Succession Plan
Murdoch, aged 92, is set to pass the reins of News Corp to his 52-year-old son, Lachlan Murdoch, the third-oldest among Rupert Murdoch's six children. Lachlan has been actively serving as the CEO and executive chairman of Fox Corp. We’re sure that he’s been waiting patiently in the wings and not at all chaffing at his dad’s long tenure.
With Forbes estimating the Murdoch family's net worth at approximately $17.5 billion, Murdoch has consistently ranked as one of the world's wealthiest individuals.
In a recent memo addressed to staff, Murdoch confirmed the leadership transition. He expressed his confidence in his son Lachlan's unwavering commitment to the cause of "freedom" and assured that he would continue Fox's storied legacy. What that legacy is, he declined to say.
Yet, the road ahead is not without its challenges. Lachlan inherits an empire fraught with legal battles, notably a $787.5 million defamation settlement with Dominion Voting Systems, the largest-known media defamation settlement in US history. Another lawsuit from a voting tech company lingers, alongside two lawsuits from Fox shareholders alleging that company directors, including Rupert and Lachlan, failed in their duties, entangling the company in defamation cases.
Moreover, the succession saga has just begun. Following Rupert's eventual passing, his shares will be divided among Lachlan and three of his five siblings: Elisabeth, James, and Prudence. Given past tensions between James and Lachlan, the coveted top position may still be up for grabs.
If this sort of drama is your thing, we’d suggest watching The Bold and the Beautiful.
