Rupert Murdoch Stock Takes Surprising Turn After Announcement

News Corp and Fox Corporation shares closed significantly higher at end of trading on Thursday after media titan Rupert Murdoch said he was stepping down as chairman of the companies and ceding leadership of the businesses to his son, Lachlan Murdoch, announcing the end of one of the most stories careers in global media.

The elder Murdoch will relinquish his roles at both companies by November, the company said in a statement, and take on a new title as chairman emeritus. Lachlan will now become the sole chairman of News Corp while also retaining his position as executive chairman and CEO of Fox.

Investors reacted positively to the news with News Corp ending the day with its shares up 1.27 percent while Fox shares jumped nearly 3 percent.

Murdoch began his career in his home country of Australia, where he took over his father's newspaper business in the 1950s and grew the business to a global media conglomerate with a presence in Europe, Asia and the United States.

Fox News, founded in 1996, has grown to become one of the most influential cable news outlets in the United States and a powerful voice in American politics. News Corp owns some of the most influential newspapers in the world, that include The Wall Street Journal and The Times of London.

Some analysts said Murdoch's stepping down was unexpected.

"This is clearly a turning point for both News Corporation and Fox News Corporation," journalist Brian Stelter, a former media correspondent at CNN and The New York Times told Bloomberg. "In some ways, it is surprising because Rupert Murdoch always said he will never retire."

The news also seemingly settled the succession intrigues that have followed the company over the last few years.

"Lachlan was clearly being groomed to be the successor," Stelter said. "Today just affirms and confirms that Lachlan is the chosen son. All along, Lachlan had to share power with his father and the idea was Rupert would never retire. Today is the closest thing to a retirement we are going to see from Rupert."

Murdoch, who has been married four times, has five other children.

Stelter suggested that Lachlan's involvement in the leadership of the companies over the last few years suggests there may not be immediate shifts in strategy. But now that he assumes sole control of the businesses, will he emerge from his dad's shadow and put his own stamp on the companies, he wondered.

The elder Murdoch's influence was clear.

"We wouldn't have The Simpsons or Family Guy without Rupert Murdoch," Stelter said. "We would not have a Donald Trump presidency without Rupert Murdoch and Fox News."

Murdoch is stepping down at a time when Fox has found itself mired in legal challenges over claims aired on the networks questioning the results of the 2020 presidential elections.

In April, the company settled a defamation suit for close to $800 million with the voting machines company Dominion Voting Systems over election claims against the outfit. It is facing other cases over allegations that the cable news channel allegedly broadcasted false narratives about the election.

Murdoch suggested that he may be officially retiring, but he was not going away.

"I can guarantee you that I will be involved every day in the contest of ideas," he said in the note to employees. "Our companies are in robust health, as am I."

"I will be watching our broadcasts with a critical eye, reading our newspapers and websites and books with much interest, and reaching out to you with thoughts, ideas, and advice. When I visit your countries and companies, you can expect to see me in the office late on a Friday afternoon."

Update 9/21/23, 18:02 p.m. ET: This story was updated to say that News Corp and Fox Corporation shares went up at the close of trading on Thursday and added background.