Rupert Murdoch plans to step down as chief executive of 21st
Century Fox Inc. and hand the reins to his son James, 42,
solidifying the family-run future of the entertainment empire.
The elder Mr. Murdoch, 84, will remain on as executive chairman
at Fox, according to people familiar with the matter. His older son
Lachlan Murdoch, 43, will be named executive co-chairman, the
people said, while Chase Carey, who is currently chief operating
officer of the company, will stay on in an advisory role to the
senior Mr. Murdoch.
The timing of these moves hasn't yet been decided and could
happen as early as this year or as late as next year, the person
said. The matter of succession is on the agenda at the next 21st
Century Fox board meeting, the people said.
Investors have been expecting an update in Fox's leadership
structure soon, as Mr. Carey has a provision in his contract that
states that he must notify the board by June 30 of this year if he
plans to exercise an option to leave six months before his contract
ends on June 30, 2016. He was widely expected to exercise that
option, though a person familiar with the company's plans said he
has decided to stay with the company at least through 2016.
Mr. Murdoch began lining up the succession plan to have his sons
inherit control more than a year ago when he elevated them to more
senior positions at his entertainment and publishing companies, Fox
and News Corp. In March 2014, James Murdoch was promoted to co-COO
alongside Mr. Carey. At the same time, Lachalan Murdoch was tapped
as nonexecutive co-chairman at both companies. News Corp, owner of
The Wall Street Journal, split from Fox almost two years ago.
Rupert Murdoch is chairman of News Corp.
In the new leadership structure, the two younger Messrs. Murdoch
will run Fox in a partnership very similar to the one currently in
place between the senior Mr. Murdoch and Mr. Carey, with one
focused on the long-term agenda and the other more focused on the
company's operations, though the roles will overlap.
CNBC earlier reported plans of the leadership transition at
Fox.
Write to Keach Hagey at keach.hagey@wsj.com
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