For Fox sake
A media mogul takes a half-a-step back and leaves his son semi-in charge. Will investors find value here?
Four in ten Americans distrust Fox News. That's not a great record. Now, Rupert Murdoch, the man who created the divisive news organisation, is passing the baton to his son, Lachlan. The younger Murdoch will take over a scandal-ridden company whose share price has waned. That might have created an opportunity for value investors, but Rupert will only leave in body, not spirit. As a result, unless the firm can clean up its image, the stock will stay undervalued.
Last week, Fox Corporation announced that Rupert would stand down as chairman in November, and Lachlan would take over. Yet, Rupert is only stepping back in title. He has said everything will continue to go through him until he’s dead. That's a weird, controlling move, as it won’t make room for his son to lead the company his way.