The media titan ran the company like a family business while enjoying access to titanic quantities of capital from investors who were denied access to the decision-making apparatus.
The business’s major investors have been wrestling with the Murdochs for years, trying to restructure the company on more democratic lines, without much success. Rupert Murdoch’s son, James Murdoch (who seriously underperformed during the phone-hacking scandal) is taking over. It’s not clear whether he’ll be able to hold his own against the bruisers that his dad has kept at bay.
It’s a high-stakes game. The Murdochs have used their media power to influence politics overtly (Fox News, The Sun) and covertly (using the publishing arm to pay giant sums to favored politicians for lame memoirs and anodyne columns). The company’s shareholders are not nearly so interested in playing power-broker and are more interested in getting a return on their investment.
Rupert Murdoch Reportedly Stepping Down As Fox CEO [Chris Morran/Consumerist]
(Image: Rupert Murdoch, World Economic Forum, CC-BY-SA)
