Rupert Murdoch’s final appearance as Fox president was at the Darryl F. Zanuck Theater in Los Angeles, the complex that houses the group’s West Coast headquarters. The 92-year-old tycoon passed the baton to his son Lachlan, 52, at the company’s shareholders meeting this Friday, as he did at News Corp’s meeting on Wednesday. A cinema was chosen as the setting to put an end to the film business. There are still the post-credits scenes. The family holding company controlled by Rupert Murdoch remains the major shareholder in both companies and as if that wasn’t enough, the tycoon has made it clear he is not slowing down.
At the meeting this Friday of Fox Corp, the company that manages the television business in the United States, Rupert Murdoch’s 70-year career was summarized in a five-minute video presented by his successor as a farewell tribute. The magnate, present in the hall, accepted the ovation of those present and thanked them, but did not intervene during the half hour that the event lasted. Yes, he did on Wednesday at the meeting of News Corp, the conglomerate that includes pay television in Australia, newspapers, publishers and real estate agents.
“As you know, I am taking on the role of chairman emeritus and Lachlan will become sole chairman of News Corp. Lachlan is a principled leader and believes in the social purpose of journalism. “I hope to continue to play an active role in the company,” he said at the meeting, which was not held at a physical location. It was purely telematic, virtual and lasted 19 minutes, including several questions from shareholders. One was whether he would continue to make money as president emeritus. “Simple: No,” the tycoon replied. But in these large companies things are usually not that simple: “Mr. Murdoch will no longer receive a salary, but certain expenses will be reimbursed,” CEO Robert Thomson said, without giving further details.
Telematic voting allowed all other members of the News Corp board to be re-elected. The oldest member is the former Spanish Prime Minister José María Aznar, 70 years old, who has been on the group’s board for 10 years and remains in the new level. However, Aznar was the director who received the most dissenting votes from shareholders: 24.7 million, just over 14%, according to results released by the company. Thomson received the strongest support with 174 million yes votes and just 0.6 million no votes, or 0.3%.
Murdoch also came up short when asked by another shareholder to share memories and regrets from his career, and he did neither. He previously gave a three-minute speech at the opening of the meeting in which he spoke about the international situation and the media. “The world is facing numerous international crises that require attention and understanding. “In the wake of the barbaric attack on Israel and the subsequent tragedies in the region, the rise of vicious anti-Semitism should seriously concern all thoughtful people,” he said. He particularly recalled the group’s journalists who are taking risks by reporting on the ground on conflicts in Ukraine and the Middle East, and the Wall Street Journal’s Evan Gershkovich, “who remains unjustly imprisoned in Russia just because he did 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 different opinions anathema. My life was certainly happy. We are lucky to live in a country where dreams are not yet regulated. There are so many inspiring stories around us of people who have created a lot of good for society from humble beginnings. Like my father, I believe that humanity has a high destiny, and Lachlan certainly shares this belief. This sense of destiny is not only a blessing but also a responsibility,” he added upon handing over power. He didn’t intervene that Friday.
Murdoch leaves his companies in good shape, albeit with uncertainties about the future. The group’s assets are of first-class quality, the companies are well capitalized and profitable, but some of its businesses are in decline or transition. The audience of its linear television networks is aging, newspaper sales are declining and the group’s size pales in comparison to giants like Comcast, Netflix, Disney and Charter.
The legal issues are still outstanding, particularly due to Smartmatic’s $2.7 billion defamation lawsuit against Fox, similar to the lawsuit that led the company to spend about $800 million to compensate Dominion, to avoid legal proceedings. A shareholder asked urgently about it during Friday’s Fox meeting, claiming the bill would impact executive pay.
Follow all information Business And Business on Facebook and Xor in our weekly newsletter
The five-day agenda
The most important business quotes of the day, with the keys and context to understand their significance.
RECEIVE IT IN YOUR EMAIL
Subscribe to continue reading
Read without limits
_