In support of his son Lachlan, Rupert Murdoch resigns as chairman of Fox and News Corporation

 In support of his son Lachlan, Rupert Murdoch resigns as chairman of Fox and News Corporation

Media magnate Rupert Murdoch has announced his resignation as chairman of Fox and News Corp. His son Lachlan will take over as CEO of both businesses.

Murdoch stated that "the time is right" for him to take on "different roles" in a note to his staff.

In 1996, 92-year-old Murdoch founded Fox News. In the US, it is now the news station with the highest viewership.

Midway through November, according to Murdoch, he will become Chairman Emeritus of both companies.

"Our businesses and I both have excellent health. Our possibilities far outweigh our business challenges," he added. "I for one am optimistic about the upcoming years, and we have every reason to be,"

Murdoch's succession drama, the most powerful media tycoon in the world, is about to come to a close.

Lachlan Murdoch: Five things you should know

The 52-year-old Lachlan Murdoch is the child of Rupert Murdoch and Anna Maria dePeyster, who was his second wife. The rich patriarch has six offspring, several of whom have continued their father's business, and has been married four times.

Elisabeth, Lachlan, and James—the second, third, and fourth—were generally left out of the succession debate.

In the late 1990s, when Lachlan, 52, was working as an executive, he became clear to be the heir apparent. He did, however, leave the company in 2005 as a result of conflict with Roger Ailes, then-CEO of Fox News. In 2014, Lachlan returned to his father's empire, where he has since occupied prominent positions.

The more liberally inclined son, James Murdoch, left the News Corporation board in 2020 due to "disagreements over certain editorial content" and other issues with the company's direction.

Despite founding her own television production firm, Shine, which created shows like MasterChef and The Biggest Loser, Elisabeth, 55, held several high-ranking positions in the industry.

The changeover occurs during a trying time for Fox, which in April settled a lawsuit brought by the manufacturer of voting machines Dominion for its coverage of the 2020 presidential election for $787.5 million (£634 million).

Another voting technology company, Smartmatic, has filed a second, related complaint against the network, demanding an even higher judgement of $2.7 billion.

Then, on April 25, Fox made the choice to "part ways" with Tucker Carlson, its highest-rated TV host, according to rumours that the decision was made at the highest levels of the company.

The Murdoch decision comes a year before the US presidential election, in which Fox News, which leans to the right, has a big say. Numerous debates amongst Republicans aiming to represent their party in the White House in 2024 are being held on the network.

How Trump and other politicians are dropped by Murdoch

In just a few days, journalist Michael Wolff will publish the eagerly awaited tell-all book "The Fall: The End of Fox News and the Murdoch Dynasty" about Fox's ruling family. Brian Stelter, a media journalist for CNN, will release a second Murdoch book on November 14.

Rupert Murdoch promised to stay involved in the "contest of ideas" in his memo to the workers.

Other media outlets were also slammed by him for being "in cahoots" with a "rarefied class" of elites who he claimed were "peddling stories of politics rather than pursuing the truth."

Lachlan Murdoch said his father "will continuing to provide valued assistance to both companies" in a statement.

The senior Murdoch started his career in his home country of Australia in the 1950s and finally acquired the UK's News of the World and The Sun newspapers in 1969.

Later, he bought other US publications, including the Wall Street Journal and the Washington Post. He continues to own hundreds of local, national, and international media outlets through News Corp.

However, he has experienced some setbacks throughout his career. For instance, he paid over $500 million for the social media platform Myspace in 2005. Facebook smashed it, and it later sold for just $35 million.

The legendary phone hacking incident that broke out after it was discovered that the News of the World had listened to the voicemails of murdered schoolgirl Milly Dowler was his most disastrous moment in the UK. For Murdoch personally, it was a disgrace that cost him a tonne of money. More than £1 billion in payouts to victims of phone hacking are said to have been made by his company.

Lachlan Murdoch was the executive chair of Fox Corporation and Nova Entertainment prior to today's news.

Following the news, Fox's stock increased by roughly 2% while News Corp's share price only increased by 0.6%.

The market's response to Lachlan's rise ultimately depends on whether Fox has a "solid and smart" plan that makes sure "that the company's leadership isn't put at risk simply due to the most powerful person, CEO, leaves the role," according to Professor Anat Alon-Beck, an expert in corporate law.

Lachlan was the planned replacement for his father, but it's not clear what will happen once he passes away.

Any stake transfer by Murdoch to his six adult children may potentially lead to a conflict over the media empire's future.