Alex Brummer: Rupert Murdoch’s Retirement Marks a Pivotal Moment
By Alex Brummer for the Daily Mail | Updated: 22:08 BST, 21 September 2023
The retirement of Rupert Murdoch from his media groups Fox and News Corp is a significant turning point. While his eldest son, Lachlan, will take the helm for now, there may be challenges in the future with three other siblings holding voting stock in a family trust based in Nevada.
The scale of Murdoch’s empire has considerably diminished. In 2019, he completed a landmark deal, selling most of his US entertainment empire to Disney for $71.3 billion (£57.5 billion). However, Disney has since struggled to make the deal work, facing a declining share price and the return of CEO Bob Iger. Murdoch’s other major sale was the British Sky network to American cable giant Comcast for $39 billion (£31.5 billion) a year earlier.
Murdoch’s ability to make bold decisions in a rapidly evolving media landscape often goes unnoticed. Instead, he is often portrayed as a powerful and manipulative figure with excessive political influence.
The remaining components of Murdoch’s media empire, such as Fox News, will require restructuring. Fox Corp’s alliance with Donald Trump has proven costly, with the network paying $800 million (£645 million) in a legal battle with Dominion, an election equipment supplier, over the alleged spread of voting conspiracy theories. While Fox News remains popular compared to its rivals, cord cutting and the rise of streaming services pose challenges to the cable subscription model.
News Corp, the owner of major titles like The Sun, The Times, and The Wall Street Journal, will also face changes under new leadership. The transition from print to digital has seen progress, but the legacy of phone hacking scandals at The Sun still looms over the publication.
However, this transition to the next generation of leadership won’t be entirely smooth. The economy’s resilience has allowed Chancellor Jeremy Hunt to accumulate higher-than-expected receipts, primarily through PAYE and VAT. Inheritance taxes have also performed well, generating £3.2 billion in the April to August period, £300 million more than the previous year.
Despite inheritance taxes not being a priority for most citizens, the offspring and grandchildren of baby boomers should pay closer attention. The residential housing market and generous pension funds have created accidental wealth, benefiting many younger generations. As the baby boomer generation passes away, the prospect of their hard-earned assets being claimed by HMRC should concern younger voters.
Simon Wolfson’s cautious management style has led to profit upgrades at Next. The company recently raised its profit guidance from £845 million to £875 million, demonstrating that despite the cost of living crisis, British consumers are still spending. Wolfson’s analysis of supply chains also highlights that the impact of inflation is diminishing. Other FTSE firms should take note and prioritize clarity over PR rhetoric.
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