Rupert Murdoch may no longer be the boss of News Corp, but he’s still the proprietor

September 21, 2023 10:21

Welcome to an end-of-week update from Unmade on a day when the tectonic plates shifted at News Corp – Rupert Murdoch has stepped down as boss, handing over the reins to son Lachlan. As we explore below, Rupert is, however, still the proprietor.

Also today – we have news of a topical addition to the program for our retail media conference REmade, and a choppy day on the Unmade Index for the two main audio players.

Nine and News Corp head up the funnel at REmade

Cat McGinn writes:

In a last-minute topical session for our forthcoming REmade conference, we’ll be hearing from two new kids on the retail media block: News Corp Australia and Nine, who are both offering their own takes on retail media networks.

The panel are set to discuss how they’re thinking about retail media as a way to meet customers where they are: engaging customers earlier in the purchase journey, the role of content in the retail media ecosystem, shoppable content and using data for e-commerce integration across platforms.

Stephenson announces RTLX at Nine’s Upfronts

News Corp put its flag in the ground around retail media back in March; Nine announced its RTLX play earlier this month.

The conversation will explore how Australia’s biggest two media operators can integrate their upstream offerings with the retail media operators at the business end of the purchase funnel.

The speakers will be:

Michael Stephenson. Chief Sales Officer at Nine;
Paul Blackburn, Director Commercial Data Video and Product, News Corp Australia;
Andrea Hill, Marketing Lead, Country Road Group

REmade takes place in Sydney on October 11. Tickets are on sale now.

Rupert’s last big strategic move?

Rupert Murdoch (foreground) is handing over to son Lachlan, centre. Pictured right, James Murdoch | Getty Images

Tim Burrowes writes:

This is not the day to write the obituary on Rupert Murdoch’s incredible career.

Nonetheless, it is a remarkable day. After nearly 71 years running the company, Keith Rupert Murdoch is no longer, officially, the boss of News Corp and Fox Corp. He made the announcement overnight. After the company AGMs in November, he’ll instead become Chairman Emeritus of both.

He is, however, still the proprietor.

Son Lachlan, whose power has increased since he returned to the empire just over a decade ago, will become sole chair of News Corp, and continue as the chair and CEO of Fox.

In Australia, News Corp has more impact than Fox Corp, which is mainly US-focused. Here, News Corp’s influence includes its news mastheads of The Australian, news.com.au, The Telegraph in Sydney, the Herald Sun in Victoria, the Courier Mail in Brisbane and the Advertiser in Adelaide (where it all began). News Corp is also the majority owner, alongside Telstra, of Foxtel Group which includes the broadcast subscription service along with streaming platforms Kayo and Binge.

The key detail which means that power remains with Rupert Murdoch comes in the ownership structure of the companies.

Although stock exchange listed, there are two types of shares, and the Murdoch family trust still controls the Class B shares which hold most of the voting rights. The family trust is run via eight votes – Rupert holds four of them, his oldest children Lachlan, James, Elisabeth and Prudence the other four.

While Lachlan appears to broadly share the same politics as his father, by all accounts the other three do not. There’s a high probability they would look to take the company in another direction when they can.

So nothing changes unless Rupert Murdoch votes for it, or until he passes away. Actuaries would tell you the life expectancy of the average 92-year-old is three years. Other would point out that Ruperts mother, Elisabeth Murdoch lived until she was almost 104.

Like everything Rupert Murdoch has done, this morning’s announcement is deeply strategic. Lachlan, his only offspring remaining within the business, is Rupert’s chosen successor. Giving Lachlan a stronger power base yet and time to consolidate it, is the best chance of him remaining in control when Rupert passes.

A very specific reference for Succession fans

One of the key passages in Paddy Mannings authoritative book on Lachlan Murdoch, The Successor, explains the situation:

“Just such a scenario is freely canvassed by investors: a Wall Street analyst who has covered the Murdoch business for decades and is completely au fait with the breakdown in the relationship between the brothers, volunteers off the record that it would be ‘fair to assume Lachlan gets fired the day Rupert dies’.”

But Rupert has absolutely not retired. His Australian staff woke up to an email from him this morning making that clear:

“In my new role, I can guarantee you that I will be involved every day in the contest of ideas. Our companies are communities, and I will be an active member of our community. I will be watching our broadcasts with a critical eye, reading our newspapers and websites and books with much interest, and reaching out to you with thoughts, ideas, and advice. When I visit your countries and companies, you can expect to see me in the office late on a Friday afternoon.”

The re-merger of News Corp and Fox Corp into one company – called off this time last year in the face of shareholder opposition – remains unfinished business.

Today’s announcement is not the end of Rupert Murdoch’s infuence.