In a significant development for the Murdoch media empire, Lachlan Murdoch’s ascension as the leader has brought a collective sigh of relief to News Corp’s Australian businesses. On Tuesday, Lachlan, often referred to as the “prodigal son,” was crowned as the new head, a move that resonates deeply at Holt Street, the heart of News Corp Australia.
While global assets like Fox News, REA, and Dow Jones thrive, the Australian arm of the empire has been struggling. News Corp Australia reported a net loss of $43.3 million in 2024, with major publications such as Melbourne’s Herald Sun, Brisbane’s The Courier Mail, and Adelaide’s The Advertiser witnessing a decline in subscribers over the past year. However, Lachlan’s close ties to Australia, where he continues to reside, offer a glimmer of hope for these legacy assets.
Relief for Australian Operations
Lachlan Murdoch’s affection for the Australian tabloids is well-known, and his leadership is seen as a stabilizing force. His father, Rupert Murdoch, has historically maintained financially stressed assets for their influence, a strategy that seems to continue under Lachlan’s reign. Despite the waning influence, significant changes like ceasing print operations appear unlikely while Rupert remains a guiding presence.
In a recent strategic decision, Lachlan halted plans to transition the Darwin-based NT News to a digital-only format, a move that would have extended to other regional titles. This decision underscores his commitment to maintaining the traditional print media landscape in Australia, at least for the foreseeable future.
Challenges and Questions
Despite securing the leadership, Lachlan faces scrutiny from shareholders and the New York headquarters if local financial losses persist. His support for News Corp Australia boss Michael Miller, who has retained his position amidst speculation of a leadership change, highlights Lachlan’s influence. Miller’s recent all-staff meeting, devoid of family drama discussions, further solidifies his standing.
Moreover, Lachlan’s rapport with Daily Telegraph editor Ben English and growing dialogue with The Australian’s editor-in-chief Michelle Gunn indicates his active involvement in editorial matters. However, Andrew Bolt, a prominent figure at News Corp, expressed relief at Lachlan’s victory, having previously threatened to resign if Lachlan’s brother, James, assumed control.
The Next Generation of Murdochs
Lachlan Murdoch’s victory is not just about the present; it sets the stage for the future of the Murdoch dynasty. Having secured the empire, Lachlan is already contemplating beyond 2050, when the family trust will undergo another iteration. The Murdoch tradition of early involvement in the family business is expected to continue, with Lachlan’s children being potential successors.
Lachlan’s middle child, Aidan, has already made his mark by interning at News Corp’s HQ and contributing to news.com.au. Meanwhile, Rupert Murdoch’s daughters from his third marriage, Chloe and Grace, have aligned with Lachlan, securing an equal third share of the family trust. Their business acumen, demonstrated by internships at Goldman Sachs, suggests they could play significant roles in the future.
Financial Strategies and Media Expansion
As Lachlan navigates his new role, financial challenges loom large. He needs to raise $US3.3 billion to settle with his siblings, a process that began with selling valuable voting stock and securing a $US1 billion loan from J.P. Morgan. Despite these hurdles, Lachlan’s private radio company, Nova Entertainment, continues to outperform competitors, hinting at potential synergies with News Corp.
Nova’s impressive revenue growth in major cities, contrasted with the decline of ARN Media, showcases Lachlan’s business acumen. This success raises the possibility of integrating Nova into the broader News Corp portfolio, potentially revitalizing the Australian media landscape.
Innovative Approaches
In a surprising twist, subscribers to Foxtel’s Kayo platform recently encountered an unexpected offering: an episode of the comedy show “The Paper,” instead of live sports. This innovative approach reflects Lachlan’s willingness to explore new content avenues, blending traditional media with modern entertainment formats.
As Lachlan Murdoch settles into his role, the media landscape in Australia and beyond watches closely. His leadership style, financial strategies, and familial dynamics will shape the future of one of the world’s most influential media empires.
