|
 Now James and Lachlan Murdoch, octogenarian media baron Rupert's
only sons, are teaming up at the helm of Twenty-First Century Fox
Inc <FOXA.O>, the crown jewel of the empire their father built.
James Murdoch, 42, is set to be elevated to chief executive of the
entertainment company that is home to "The Simpsons" and movie
franchises like "Planet of the Apes." Lachlan, 43, will become
co-executive chairman with his father as executive chair, a source
familiar with the situation said on Thursday, describing the
arrangement as a partnership between the brothers.
Investors say the brothers' ability to work together is one of the
keys to Fox's future.
“When the old man is gone, who knows what their relationship is?”
said Matthew Benkendorf, a portfolio manager at Vontobel Asset
Management, which has about 719,000 Fox shares.
Those who know them say the Murdoch brothers could not be more
different in style and approach to business, where James is seen to
have a much harder edge.
“They are very, very, very different," said a source who knows the
family. “Lachlan’s less confrontational than his brother, he’s easy
going, he’s not got that same sort of naked ambition."
Both, however, have been raised by a father who lived and breathed
the News Corp business. "It’s hard to explain: it’s not a normal
family; they have been bought up as part of a dynasty with a clear
understanding that the business came first," said the source who
knows the family.
The differences could work in their favor as James focuses more on
the operational side of the business and Lachlan works with his
father on strategic issues.
"They have a good understanding of what each other's strengths are,"
the person said of the brothers, whose filial loyalties were on full
display when Lachlan hobbled into High Court in London with his leg
in a cast when James appeared regarding the phone hacking scandal
that bedeviled Murdoch's UK newspapers starting in 2011.
RETURN TO THE FOLD
A former News Corp senior employee who asked not to be identified
said there had never been "even a hint of" sibling rivalry between
the two.
James has had a laser focus on the family business since he joined
News Corp following a brief foray into a hip-hop record business
after dropping out of Harvard.
That led to the technical and international experience that has left
many analysts and investors impressed by his media business chops.
It also meant that he had to deal with the hacking scandal, whose
aftermath he was accused by some of mishandling, although he was
cleared of any wrongdoing.
[to top of second column] |
Lachlan, who had been seen as Murdoch's natural heir apparent before
resigning as deputy News Corp chief operating officer in 2005 after
clashing with executives in New York, has taken a more circuitous
route back to the top of the family empire.
He mostly focused on interests in Australia while remaining a
director at News Corp and Fox until 2014, when he was named to his
current position as non-executive co-chairman of the board at both
companies - a return to the fold long desired by his father.
One key question left unanswered by the brothers' joint promotion to
the upper echelons of Fox is who, if anyone, will be looking after
the print portion of Murdoch's holdings, grouped into News Corp
<NWSA.O> and long their father's sentimental favorite.
When James Murdoch was named Fox chief operating officer in March
2014, it was assumed that Lachlan, who at the time was also promoted
to non-executive co-chairman of both Fox and News Corp, would focus
on the latter.
The former News Corp employee believes that is still the case, but
Lachlan plans to move to Los Angeles, where Fox's movie studios are
based.
James may not share his father's passion for print, especially after
his rough ride overseeing News Corp's British newspapers.
"James sees himself as responsible for Fox and has really not wanted
to touch the newspapers with a barge pole, and for a considerable
period of time,” said Claire Enders, founder of Enders Analysis.
(Additional reporting by Georgina Prodhan and Ross Kerber; Writing
by Christian Plumb; Editing by Dan Grebler)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
