Rupert Murdoch’s last act as president of Fox took place at the Darryl F. Zanuck Theater in Los Angeles, within the complex where the group’s headquarters are on the West Coast. The 92-year-old tycoon passed the baton to his son Lachlan, 52, at the company’s shareholders meeting this Friday, just as he did at News Corp’s meeting on Wednesday. A cinema-theater has been the setting chosen to put an end to a movie business life. There are still the post-credits scenes. The family holding company controlled by Rupert Murdoch continues to be the reference shareholder of both companies and, if that were not enough, the tycoon has made it clear that he does not let his guard down.
At this Friday’s meeting of Fox Corp, the company that manages the television business in the United States, Rupert Murdoch’s 70-year career has been condensed into a five-minute video, which has been presented by his successor as a tribute parting. The magnate, in the room, received the ovation of those present and gave thanks, but he did not intervene in the half hour that the event lasted. He did do so on Wednesday at the board of News Corp, the conglomerate that includes pay television in Australia, newspapers, publishing and real estate brokerage.
“As you know, I am stepping into the role of Chairman Emeritus, and Lachlan will become the sole Chairman of News Corp. Lachlan is a principled leader, and a believer in the social purpose of journalism. I hope to continue playing an active role in the company,” he said at that meeting, which he did not have any physical location. It was purely telematic, virtual, and lasted 19 minutes, including several questions from shareholders. One of them was whether he would continue to earn money as president emeritus. “Simple: no,” replied the tycoon. But in these large companies things are not usually so simple: “Mr. Murdoch will not continue to receive a salary, but certain expenses will be reimbursed,” said CEO Robert Thomson, without giving further details.
The telematic voting allowed all the other members of the News Corp board to be re-elected. The oldest member has become the former president of the Spanish Government José María Aznar, 70 years old, who has already served 10 years on the board of directors of the group and remains in the new stage. Aznar was, however, the director who received the greatest number of votes against by shareholders: 24.7 million, just over 14%, according to the results released by the company. The most supported was Thomson with 174 million votes in favor and only 0.6 million against, 0.3%.
Murdoch was also curt when asked by another shareholder to share memories and regrets from his career, and he did neither. Before, at the opening of the meeting, he had a speech of just over three minutes in which he spoke about the international situation and the media. “The world is facing multiple international crises that demand attention and understanding. In the wake of the barbaric attack on Israel and the subsequent tragedies in the region, the rise of virulent anti-Semitism should seriously worry all thoughtful people,” he said. He especially reminded the group’s journalists who are taking risks by covering the conflicts in Ukraine and the Middle East on the ground, and Evan Gershkovich of the Wall Street Journal, “who remains unjustly imprisoned in Russia simply for doing his job,” he said.
“There is no doubt that we should all be concerned about the suppression of debate by an intolerant elite that considers divergent opinions anathema. My life has certainly been fortunate. We are lucky to live in a country where dreams are not yet subject to regulation. There are so many inspiring stories around us of those who have created much social good from humble beginnings. Like my father, I believe that humanity has a high destiny and Lachlan certainly shares that belief. That sense of destiny is not only a blessing, but a responsibility,” he added in what was his transfer of powers. This Friday he did not intervene.
Murdoch leaves his companies in good shape, although with uncertainties for the future. The group’s assets are of first quality, the companies are well capitalized and profitable, but several of its businesses are in decline or transformation. The audience of its linear television channels is aging, newspaper sales are falling and the size of the group pales next to giants such as Comcast, Netflix, Disney or Charter.
The legal problems are still open, especially due to Smartmatic’s $2.7 billion defamation lawsuit against Fox, similar to the one that led it to spend some $800 million to compensate Dominion to avoid trial. A shareholder has asked insistently about this during the Fox meeting this Friday, claiming that the legal bill has repercussions on the executives’ salaries.
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