Question marks remain about how Murdoch’s heirs will share power after he dies. All that has been reported is that his eldest four children -- James, Lachlan, Elisabeth and Prudence -- have voting shares in a family trust. “What happens post-Rupert, I have no idea,” said Rich Greenfield, an analyst at BTIG who has a neutral recommendation on the stock and has been covering the company since 1995.
Investors have grown comfortable with the idea of Murdoch and his sons working together on Fox’s strategic direction, Greenfield said. The triumvirate of James, Rupert and Lachlan ushered in an orderly change of leadership at the film studio, hiring Snider and eventually promoting her to replace Jim Gianopulos. Contract renewals with cable carriers helped increase fees from pay-TV companies last quarter by 8 percent, a trend the company expects to accelerate. Murdoch still spends part of his time in his office on the eighth floor with his sons.
All three Murdochs decided on a call together to let go of O’Reilly last month amid sexual-harassment allegations. Despite the seriousness of the claims, O’Reilly’s dismissal was still a remarkable decision given the host had claimed the top slot in cable TV news for a decade. Fox News co-president Bill Shine was ousted shortly after, part of an attempt to show Fox was taking drastic steps to address the situation.
“Don’t try to separate Rupert from Lachlan from James,” said BTIG’s Greenfield. “This is the Murdoch family ownership and you will live or die in the stock based on their vision and success.”
This article was provided by Bloomberg News.