What next for the Murdoch empire?

What next for the Murdoch empire?

Rupert Murdoch seems to have realised there is one predicament he can't maneuver his way out of. As he approaches 94 next month, he seems to be tying up loose ends. He has tried to reunite his companies News Corp and Fox, has taken emeritus positions at both, leaving his favored son Lachlan as sole chairman, and pursued an acrimonious court battle, named "Project Harmony" to change the voting structure of the family trust and cement Lachlan’s (more conservative) control. 

Reporting from The New York Times and the Atlantic details the smoking familial ruins left in the wake of those moves. But, as one Murdoch insider points out, “the boss never gives up". And an examination of his empire, spread across three nations, shows that just under the surface, things are changing in ways that hint at what is next.  

Australia

Despite appearing at the Super Bowl where he was reunited with former Fox News anchor Megyn Kelly, to bask in Fox's ratings dominance and robust share price, Lachlan Murdoch usually calls the shots from his Sydney home. (Rumours that he spends his days spearfishing and rock climbing are, we are told, inaccurate. He is motivated by the notion of media baronetcy.) 

The Australian business sold pay TV company Foxtel to billionaire Len Blavatnik’s sports streaming platform DAZN for $2.1bn just days before Christmas. It went unnoticed by most investors, but was seen as a relief. That deal was masterminded by Siobhan McKenna, the chief executive of News Corp’s broadcasting arm, who is viewed by insiders as the “Lachlan whisperer”, and is tipped for bigger things. 

The jewel in the NewsCorp business is REA Group, a digital property business that is a money spinner. Newspapers, including Sydney’s Daily Telegraph and the Adelaide Advertiser, remain a drain on the bottom line but are close to Rupert's heart — the latter city is where it all began. The Australian, a daily broadsheet, is performing strongly, as is Sky News Australia. 

And the next generation are following in the family traditions. Last year Lachlan’s son Aidan interned at News.com.au, the country's biggest news website. He rode a motorcycle to work. 

United Kingdom

The Sun, once one of Rupert's prized possessions, a company cash cow and a fearsome political weapon, is down from three million copies sold daily to under 600,000, despite final settlements in the phone hacking scandal. Rupert is still sometimes seen walking the floors of its offices at the Baby Shard in London Bridge accompanied by the chief executive of the UK businesses, Rebekah Brooks. (Her name is often mentioned as a successor to Robert Thomson as overall News Corp chief executive).  

The broadsheet The Times has built a prospering digital business. But a $30 million investment in Piers Morgan to spearhead TalkTV came to nothing. (The channel is now shuttered.) The company reversed course on buying The Spectator, a powerhouse magazine in British conservative politics. And the pool of potential buyers for its own assets is limited by its success in changing British law to prevent foreign buyers acquiring the rival Telegraph newspapers. 

United States 

Dow Jones, the parent company of the Wall Street Journal, remains a phenomenal business. But many viewed Sunday Times editor Emma Tucker’s arrival in 2023 as an attempt to give the paper a glossy front end while cost cutting for a potential sale.

It is, said Claire Enders, the founder of Enders Analysis and a long time Murdoch observer, "big enough to be a considerable interest to a private equity owner," with "a very high degree of authority and stickiness with its subscription base.” It is underpinned by an enviable business-to-business division that was revitalised by former Dow Jones chief executive Will Lewis and his replacement Almar Latour. 

Meanwhile, rumors of Fox News' demise were greatly exaggerated. Under chief executive Suzanne Scott, the settlement with the voting machines company Dominion is a distant memory. Advertisers are returning in droves, ratings are up and more than a dozen former Fox News employees or contributors serve in influential roles in the Trump administration. Elon Musk and the Mercer family are seen as potential buyers were the network be put up for sale. 

The next Murdoch generation will now also play a significant role. Wendi Deng’s two daughters, Grace and Chloe, are now adults. Elizabeth and Prudence both have three children, Lachlan and James two. It leaves potential for divisions and factions to multiply, with knock-on complexities for the Murdoch family even after the trust expires in 2030. 

None of it will matter if, as one analyst told us, the companies continue to be profitable. “The Murdochs are really good at making people money. And really that is all that matters.”