Executives come and go. Lately, CEOs have come and gone more quickly than they used to. However, Rupert Murdoch, 92, is not the typical executive, and Fox Corp and News Corp are not typical organizations. Over decades, he created a multibillion-dollar media empire that, in turn, changed journalism for better and for worse.
So, now that he's stepped back, what's next for his companies and the news business as a whole?
Typically, the longer the tenure of the executive, the trickier and more challenging the transition to a new leader will be. Murdoch, who inherited his first newspaper when he was 21, is a VERY long-term executive. That would be a very challenging situation for any new leader. Murdoch shaped Fox News' culture, strategy, values, processes, and image. With a new boss, it is possible for an organization to go in new directions, but it's not easy to do—especially when you're succeeding a giant.
Given his legacy at the company and on media overall, it will be difficult or impossible to disentangle Murdoch's influence from the organization. If we look at another media and entertainment giant, Disney, we still see the significant influences of its founder, Walt Disney, on the company more than 50 years after his passing. While each new leader of the Mouse House offered a variation of vision and values, the founder still runs through the whole organization. Walt Disney's name always will be linked to the company he created, and Rupert Murdoch's name always will be linked with his companies.
The new leader is Lachlan Murdoch, Rupert Murdoch's eldest son, which signals that not much is likely to change at Fox Corp and News Corp. There will still be a Murdoch in charge. Lachlan learned at the feet of his father, and that will probably mean business as usual—just with a different Murdoch at the lead. Moreover, the elder Murdoch is not going too far. Rupert will remain involved as the chairman emeritus. Writing to the employees at Fox News, The Wall Street Journal, and the other various branches of his operation, Rupert signaled that he still be part of the business and its daily decisions. He stated, "I have been engaged daily with news and ideas, and that will not change. The time is right for me to take on different roles." While Murdoch is stepping away, he is not stepping out of the business.
Lachlan Murdoch said that "we are grateful that he will serve as chairman emeritus and know he will continue to provide valued counsel." But should he be grateful? While it seems reasonable to assume that having the former leader remain in the organization with a different role could provide stability and support during the transition, Rupert Murdoch remaining as the chairman emeritus may not have the benefit that the organization hopes that it will.
A 2020 paper published in the Academy of Management Journal by Xiwei Yi, Yan Anthea Zhang, and Duane Windsor found that when the predecessor CEO remains as a board chair, the new CEO's likelihood of leaving the job early increases by 2.42 times. Moreover, we have seen this situation play out recently, if without the familial connection. When Bob Iger stepped down from his role as Disney chairman and CEO, Bob Chapek stepped into the role in February of 2020. However, Iger remained active in the company as the executive chairman. He kept his office and held his own meetings. While Chapek attempted to forge new paths for Disney, he could not escape the effect of Iger's continued presence. It ended in disaster for him. In November of 2022, Chapek found himself ousted and Iger reclaiming his position.
Is Rupert Murdoch likely to reclaim his position from his son? I would be surprised. His return to the role would communicate that Lachlan cannot be the leader that the company needs, which would damage the reputation of the Murdoch name and its companies. It is more likely that Rupert will continue to influence decisions in a less public way, and, for now, Lachlan will continue business fairly close to usual in order to preserve the legacy that his father built.
Lynne Vincent is an associate professor of management at the Whitman School of Management at Syracuse University. Her research examines the evaluations and consequences of creativity in organizations.
The views expressed in this article are the writer's own.
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
