Media magnate Rupert Murdoch has announced his departure as chairman of Fox (FOXA) concluding a career that spanned almost 70 years. Murdoch, who played an instrumental role in shaping global media, is credited with the establishment of a conservative media empire, comprising newspapers in the US, UK, and Australia, as well as the prominent US cable network, Fox News. Lachlan Murdoch, Rupert's son, is set to succeed him, becoming the sole chairman of News Corp. while also retaining his roles as executive chair and CEO of Fox (FOX). Despite the historical success and influence of the Murdoch dynasty, which has redefined the conventional media paradigm, the empire faces challenges in adapting to the modern digital content era, particularly streaming services. Furthermore, controversies, such as the phone-hacking scandal in London and accusations against Fox News for allegedly propagating misinformation during the 2020 US election, have cast shadows over the legacy.
Fox Corp. shares experienced a 2.3% increase, reaching $31.88, while News recorded a subtler growth, with its shares up by less than 1% to $19.85. In his farewell letter to Fox employees, Rupert Murdoch articulated his belief that it's the appropriate juncture for a role shift, emphasizing both his and the company's enduring vitality. He vowed to maintain an active involvement in ideological debates, emphasizing the critical importance of free speech and expression in contemporary times.
The media titan's influence has been profound, wielding significant power over public sentiment through diversified media assets such as the Wall Street Journal and various TV properties. As Rupert Murdoch withdraws, the responsibility of steering the vast media conglomerate, which originated from a local Australian newspaper, now rests with his eldest son, Lachlan. Under Rupert's guidance, Fox redefined broadcasting norms, especially in sports, and Fox News emerged as a pivotal platform for leading Republican figures, including Donald Trump, while often critiquing Democratic leaders.
However, the company's alignment with Trump, especially the latter's contentious claims regarding the 2020 elections, has proven costly. Notably, Fox News agreed to a staggering settlement of $787.5 million with Dominion Voting Systems Inc., after the latter accused the network of falsely claiming vote rigging against Trump. Investigations revealed that several top-tier Fox personalities, including Rupert Murdoch himself, dismissed these conspiracy theories privately, even while publicly endorsing them.
