The rising of the sons: Lachlan Murdoch to join his father Rupert at the top of News Corp

LACHLAN Murdoch has been appointed non-executive co-chairman of 21st Century Fox and News Corp, the company annnounced.

RUPERT Murdoch has paved the way for eldest son Lachlan Murdoch to eventually succeed him, placing him at the helm of his vast film, entertainment and publishing empire.

The veteran media proprietor announced his son had been appointed non-executive co-chairman of 21st Century Fox and News Corp.

The stunning rise comes almost nine years after the 42-year-old stepped away from the family-controlled business, moving to Sydney to build his own media company.

McCRANN: MURDOCH MOVES SIGNAL VISION FOR THE FUTURE

Mr Murdoch’s youngest son James Murdoch, 41, was appointed co-chief operating officer of 21st Century Fox and will work alongside president and chief operating officer Chase Carey.

The appointments set in place a clear succession strategy, although Mr Murdoch indicated to staff he planned to continue leading the company “over the coming decade”.

“Lachlan is a strategic and talented executive with a rich knowledge of our businesses,’’ said Mr Murdoch, who remains executive chairman of both companies.

“This evolution of our leadership team underscores the considerable planning that both the company and the board have undertaken to ensure a vibrant future for 21st Century Fox and its shareholders.’’

Lachlan Murdoch.

To take on his new role as one of the world’s most powerful media executives, Lachlan Murdoch stepped down as chairman and director of Network Ten.

He will retain an 8.8 per cent stake in the network.

Ten chief executive Hamish McLennan will take on the role of executive chairman.

The moves comes as media companies, including News Corp, Fairfax Media and Nine Entertainment Co., lobby the federal government to overhaul media laws to allow potential mergers. But a source close to Lachlan Murdoch hosed down speculation News was planning to take over Ten.

Lachlan Murdoch will split his time between New York and Sydney, where he lives with his wife Sarah Murdoch and their two sons and daughter.

“I’m looking forward to working more closely than ever with my father as well as (News Corp chief executive) Robert Thomson and his team, who have launched the new News so successfully,’’ he said.

“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.”

News Corp owns a stable of global publishing and information assets, which include The Daily Telegraph, The Australian, The Wall Street Journal, a 50 per cent stake in Australian pay-TV company Foxtel and online real estate group REA.

Lachlan Murdoch’s appointment was met with wide applause within the industry.

Seven chief executive Tim Warner said it was “truly great to see an Australian going on to lead a global media company like this”.

“He has already proven himself to be an executive with foresight and acumen in the Australian media marketplace and we have no doubt that he will make a great contribution to a great company.’’

Mr McLennan described him as “a man of substance and character’’.

Communications Minister Malcolm Turnbull, who has known the Murdoch family for decades, said the new role was a “very big job but he’s been in training for it all his life”.

“I’m sure he will do very well and I wish him all the best,” he said.

Through his private company Illyria, Lachlan Murdoch has built the Nova Entertainment group into a market leader. The company reported earnings of $40 million for the 12 months ending September.

Rupert, James and Lachlan Murdoch / Picture: Rupert Murdoch / tumblr

ALL EYES ON THE PHONES AS TV MOGULS SHARE A MEDIA MOMENT

Shari Markson

AUSTRALIA’S high–powered television CEOs were standing side by side at the back of the Great Hall in Parliament House when the news broke that Lachlan Murdoch had been promoted to work side-by-side with his father to run News Corp and 21st Century Fox.

In the historic room that has hosted receptions for the Queen, Princess Mary of Denmark and US President Barack Obama, Nine Network chief executive David Gyngell, Seven boss Tim Worner, Seven commercial director Bruce McWilliam and Ten chief Hamish McLennan were shoulder to shoulder, sipping white wine and rose champagne, chatting quietly.

David Gyngell, Tim Warner and Bruce McWilliam.

Then the news hit. The executives checked their emails and texts. They looked at each other. Everyone stopped listening to Free TV chairman Harold Mitchell’s speech.

“It was hilarious, wasn’t it,’’ said McLennan, who was promoted to executive chairman through the chain of announcements. He was the only person in the room who knew the announcement was imminent.

“I was standing next to (sales director) Lou Barrett and I think Harold was speaking and then everyone was looking at their BlackBerrys and their iPhones, so it was pretty funny really,” he said.

“Tim (Worner) and David (Gyngell) were joking, they said that it sets a good precedent for them.”

McLennan said the changes had been discussed at a board level and “it all happened quite quickly”.

ABC boss Mark Scott.

Hamish McLennan with Louise Barrett.

The news took only a few minutes to spread through the 300 media types, celebrities, soapie stars and politicians, including Ita Buttrose, 60 Minutes’ Tara Brown, X-Factor’s Luke Jacobz and Sunrise’s David Koch, who were gathered for a function celebrating digital free-to-air TV.

“It was a media moment,’’ ABC managing director Mark Scott said just after the announcement.

“The news electrified the room and bubbled through the speeches. The nation’s media executives were half listening to the speeches and half tuned in to their mobile phones,” Mr Scott said.

Last night casino owner
James Packer praised his friend Lachlan’s appointment.

“It’s an outstanding achievement and Lachlan is truly deserving,’’ Packer said. “He has great character and business acumen and will do a wonderful job for the company.”

INK IN HIS VEINS, JUST LIKE HIS FATHER Damon Kitney

LACHLAN Murdoch, like his father, has ink in his veins.

After years of investing in television, radio and even Indian cricket teams, Murdoch is back at the helm of something he loves — a newspaper company.

Not since his time at the New York Post, where he was publisher from 2002 to 2005 and increased its circulation by more than 40 per cent, has he has been at the pointy end of the board table of a company with significant print media assets.

Now, as non-executive co-chairman of News Corp, he wants to drive the company’s transition to a digital future. Many credit him for News Corp’s 60 per cent investment in digital real estate portal REA more than a decade ago, which has delivered big profits.

As non-executive co-chairman of 21st Century Fox, he will oversee key assets he ran in the mid-2000s, such as the Fox network of television stations in the US.

That was before his famous decision to flee New York in 2005, when he resigned from executive roles in the company to return to Australia to set up his private investment vehicle, Illyria. He has continued to serve on the News Corp and 21st Century Fox boards.

Back in Sydney, he bought a 9 per cent stake in regional free-to-air TV station Prime Media in 2009, selling it for a profit in 2012. The same year he spent $110 million buying half of DMG Radio Australia, operator of the Nova radio network, taking full ownership three years later. Nova has become Australia’s number one national FM network.

In 2006, Rupert Murdoch said he wanted one of his children to succeed him. “I think that’s a natural desire,” he said. “They’ve got to prove themselves too.”

Today his wish is one step closer.

Channel Ten AGM in Sydney with Hamish Mc Lennan and Lachlan Murdoch.