Lachlan Murdoch named co-chair of News and 21st Century Fox, steps down as chair of Ten
Lachlan Murdoch has been named co-chair of News Corp and 21st Century Fox this evening, in a move that will see him chair the publisher together with his father Rupert Murdoch.
As part of the move Murdoch will step down as chairman of the Ten Network but will retain him 8.8 per cent shareholding in the TV network. Ten CEO Hamish McLennan will replace Murdoch as chairman of Ten.
“This appointment is a sign of confidence in the growth potential of News Corp and a recognition of Lachlan’s entrepreneurial leadership and passion for news, digital media and sport,” said Rupert Murdoch, executive chairman of News Corp in a statement to the stock exchange.
“In this elevated role, Lachlan will help us lead News Corp forward as we expand our reach and invest in new technologies and markets around the world.
The move sees Lachlan Murdoch return to News Corp after a nine year absence from the company.
Speculation that the Lachlan may return to the company has been rife for years but the son of the chairman has long refused to return after he was thought to have fallen out with a number of senior News Corp executives a decade ago.
In the announcement, Robert Thomson chief executive of News Corp welcomed the move which will only fuel speculation about succession plans at the publisher.
“I’ve had the pleasure of knowing and working with Lachlan for a number of years, and I’m delighted he’ll be serving in this elevated capacity,” said Thomson.
“Lachlan’s experience, acumen and enthusiasm will serve us well as we guide News Corp and its businesses through this era of digital transformation and global expansion.
Lachlan’s brother James Murdoch has been elevated to the position of co-chief operating officer at News Corp.
At this stage the full impact of the decision on Lachlan Murdoch’s various media interests in Australia is unknown. Speculation has been growing lately that News Corp may try to buy Ten although the company has sought to play this down.
Murdoch himself said he was grateful to return to the board of the influential global publisher.
“I am grateful to the Board of News Corp for this exciting opportunity, and I’m looking forward to working more closely than ever with my father as well as Robert Thomson and his team, who have launched the new News so successfully,” said Lachlan Murdoch.
Nic Christensen
News Corp announcement:
Lachlan Murdoch has been named Non-Executive Co-Chairman of News Corp by the Board of Directors, the company announced today.
“This appointment is a sign of confidence in the growth potential of News Corp and a recognition of Lachlan’s entrepreneurial leadership and passion for news, digital media and sport,” said Rupert Murdoch, Executive Chairman of News Corp. “In this elevated role, Lachlan will help us lead News Corp forward as we expand our reach and invest in new technologies and markets around the world. We have many challenges and opportunities ahead, and Lachlan’s strategic thinking and vast knowledge of our businesses will enable me as Executive Chairman and the company as a whole to deliver the best outcomes on behalf of our stockholders, employees and customers.”
“I’ve had the pleasure of knowing and working with Lachlan for a number of years, and I’m delighted he’ll be serving in this elevated capacity,” said Robert Thomson, Chief Executive of News Corp. “Lachlan’s experience, acumen and enthusiasm will serve us well as we guide News Corp and its businesses through this era of digital transformation and global expansion. His early appreciation of the value of REA, the digital property site that is a jewel in our crown, is an indicator of his prescience and strategic savvy.”
“I am grateful to the Board of News Corp for this exciting opportunity, and I’m looking forward to working more closely than ever with my father as well as Robert Thomson and his team, who have launched the new News so successfully,” said Lachlan Murdoch. “News Corp today has the energy and sensibility of a start-up and is at the cutting edge of change in the media, publishing and education industries, and much more.”
Lachlan Murdoch, age 42, is currently a Director of News Corp and 21st Century Fox, Executive Chairman of NOVA Entertainment Group, Executive Chairman of Illyria Pty Ltd, and a Director of Sydney’s Museum of Contemporary Art. Until recently, he also served as Non-Executive Chairman of Ten Network Holdings. Under his leadership, NOVA Entertainment Group became Australia’s number one national FM network.
Prior to founding Illyria in 2005, a successful private investment company, Lachlan was the Deputy Chief Operating Officer of News Corporation (now 21st Century Fox), a role in which he was directly responsible for two thirds of the company’s global revenue, with specific emphasis on its U.S. television stations group and publishing assets.
While at the former News Corporation, Lachlan had oversight of HarperCollins and the company’s lines of business in Australia, including REA. He also served on the Board of Foxtel and as Chairman of Fox Television Stations and Publisher of the New York Post. At Fox Television Stations, Lachlan oversaw the company’s 35 owned-and-operated television stations, where he raised the bar on local news coverage nationwide, increasing the total number of local news hours across the group to more than 850 per week. At the New York Post, Lachlan overhauled the tabloid and grew its circulation by more than 40 percent. During his tenure, the Post became the nation’s fastest growing newspaper and the seventh largest in the United States.
Ten Statement:
Ten Network Holdings Limited (ASX:TEN) (“TEN” or the “Company”) today announced changes to its Board of Directors. Hamish McLennan has been elected Executive Chairman, following the decision of Lachlan Murdoch, TEN’s existing Non-executive Chairman, to retire as Chairman and a Director.
“On behalf of the Board I thank Lachlan for the contribution he has made during a very difficult time for the Company. I am pleased that he will retain his commitment to TEN through continuing to hold his 8.8 per cent shareholding in the Company, together with the shareholder guarantee that his company has provided in respect of TEN’s new loan financing arrangements,” Brian Long, TEN’s Deputy Chairman and Lead Independent Director said today.
“Hamish will make an excellent successor to Lachlan as Chairman. He combines deep international experience in advertising and media, along with a broad business understanding. The Board looks forward to Hamish leading TEN as Executive Chairman,” Mr Long said.
“I look forward to continuing the strategy to restore TEN’s performance as a leading entertainment and news content company across all our platforms and so increase value for our shareholders,” Mr McLennan said.
Is Lachlan now in breach of the law? Just joking. Of course the law will catch up with Rupert’s governance model.
Seriously. This is comedic.
Anyhow. On the biz front it would appear that we have the answer. Lachlan is to be the news corp guy. Which means Robert Thomson had better be very smart. Or simply good at making Rupert happy. (Ok. Tick)
Changes the whole dynamic in oz I think. And not in a good way.
User ID not verified.
Well – I was looking for a good reason to sell my News Limited shares !!
User ID not verified.
Curiously, the press releases don’t mention Superleague, One Tel, MySoace or other Lachie-related investments that cost the company more than $1 billion.
User ID not verified.
Good time to offload your News shares, while they’re still worth something.
User ID not verified.
Sell. Sell. Sell.
User ID not verified.
Odd board model for Ten. No other prominent media company has a CEO/chairman hybrid. Raises a few governance questions. Especially so considering the networks performance.
User ID not verified.
Oh dear oh dear. Messed up TEN, lucked in with Nova, fell over with One Tel, My Space & who know what else……sorry Lachie…I can’t ‘keep the faith’
User ID not verified.
@ Interesting
Unless, of course the CEO/Chairman hybrid model of Channel 10 is only a temporary fixture. In anticipation of, say, a new controlling share stake in Channel 10 from, perhaps, some powerful international media company, who might wish to place their own stamp on the board?
Although, of course, this is very unlikely, as there would have to be substantial media ‘reform’ beforehand if this international media company already owned substantial Australian media holdings. And I can’t imagine any government being willing to act against the national interest and further concentrate media ownership in the country with the most concentrated media ownership in the developed world already.
User ID not verified.
Hybrid model can only mean one thing for 10, out of the fire and into the burning flames of hell.
User ID not verified.