Possible New Roles For Two Murdochs -- WSJ
May 09 2018 - 3:02AM
Dow Jones News
By Keach Hagey and Joe Flint
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (May 9, 2018).
James Murdoch, the 21st Century Fox chief executive, is planning
to strike out on his own if Fox's pending deal to sell much of the
company to Walt Disney Co. closes, most likely by starting a
venture-capital fund to invest in digital and international media
businesses, according to people familiar with the matter.
Lachlan Murdoch, James's older brother, is expected to become
chief executive of the remaining Fox company, so-called New Fox,
according to people familiar with the matter.
After Disney last December announced an agreement to purchase
the bulk of Fox for $52.4 billion, people close to the deal said
James Murdoch could wind up taking a senior position at Disney.
On an earnings call in December, CEO Robert Iger said that James
Murdoch would help integrate the companies "and during that period
of time, he and I will continue to discuss whether there is a role
for him here or not." Inside Disney, a role for him was always seen
as uncertain, according to people familiar with the matter.
In recent weeks James Murdoch has begun to tell associates that
he isn't going to Disney, according to people familiar with the
matter.
Disney in March announced a reorganization that positions two
top executives as potential successors to Mr. Iger: Kevin Mayer,
who was named chairman of a new direct-to-consumer and
international segment, and parks chief Robert Chapek, who added
consumer products to his portfolio.
A Disney spokeswoman couldn't immediately be reached to
comment.
A venture fund is one of several new opportunities James Murdoch
has been considering, some of the people said. "He views himself as
an operator," said one friend of James Murdoch. "Picking
businesses, mentoring business, and running businesses is what he
does."
The decision to sell marked the end of an era for 21st Century
Fox Executive Chairman Rupert Murdoch and his family, which have a
39% voting interest in Fox. The all-stock Disney deal involves the
sale of the Twentieth Century Fox TV and film studio, cable
networks including FX and National Geographic, international
businesses including Fox's 39% stake in European pay TV company Sky
PLC, and a stake in the streaming business Hulu.
The takeover drama may not be over. Cable giant Comcast Corp. is
making preparations to potentially pursue a hostile, all-cash bid
for these assets, and has lined up the necessary financing, people
familiar with the matter say.
Before the Disney deal was reached, Comcast had submitted an
offer for the Fox assets that was 16% higher, but Fox turned it
down partly over fears that it wouldn't pass muster with antitrust
regulators, according to a regulatory filing last month and people
familiar with the situation.
The notion of James Murdoch having a possible role at Disney
wasn't a factor in Fox's final decision to opt for Disney's offer
over Comcast's, according to people familiar with Fox's
thinking.
If a sale of the Fox entertainment assets goes through, Lachlan
Murdoch would oversee the assets Fox isn't selling -- including the
Fox broadcast network, Fox News cable channel and Fox Sports 1.
Lachlan Murdoch currently serves as executive co-chairman of
21st Century Fox. He is also executive co-chairman of Wall Street
Journal-parent News Corp, in which the Murdoch family holds a 39%
voting stake.
John Nallen, currently the chief financial officer of 21st
Century Fox, is expected to become the chief operating officer of
the so-called New Fox, the people said.
Write to Keach Hagey at keach.hagey@wsj.com and Joe Flint at
joe.flint@wsj.com
(END) Dow Jones Newswires
May 09, 2018 02:47 ET (06:47 GMT)
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