Murdoch Departure Was Due To Family Rift

Reports in American newspapers over the weekend have claimed that a rift between Rupert Murdoch and his son Lachlan was behind his surprise decision to leave News Corp, announced last week.

The Wall Street Journal and New York Times both published claims by un-named sources that Murdoch’s eldest son and heir had felt uncomfortable in recent months. The two had also clashed over business practices, resulting in Lachlan’s father giving him a “dressing down” in front of top executives.

The “final straw,” according to the New York Times, was a series of meetings held between Rupert Murdoch and Jack Abernathy, president of Fox TV’s 35 local stations, which Lachlan was not invited to attend, despite having overall responsibility for them.

Although outwardly the Murdochs, and News Corp as a whole, are keen to show a united front, the Wall Street Journal claims that the situation has developed into “a drama that is tearing apart the extremely private family.”

Denying the claims, however, Rupert Murdoch said in a statement to both papers: “There is no dispute. All my children will be treated equally. I look forward to the day when Lachlan wants to return to our company.”

The departure of 33 year-old Lachlan was announced last Friday, with the outgoing deputy chief operating officer planning to return to Australia to spend more time with his wife, Sarah, and son, Kalan (see Lachlan Murdoch Steps Down From News Corp).

His resignation ends an 11 year career with News Corp, leaving his younger brother James, currently chief executive of BSkyB, in prime position to take over his father’s position as chairman and chief executive of the company.

However, former Sunday Times editor Andrew Neil has this morning gone on record, predicting that the Murdoch family business will not survive beyond the death or departure of Rupert Murdoch.

Drawing on his experience and dealings with Murdoch and his businesses, Neil told The Guardian that, rather than seeing James Murdoch succeed him, Rupert is likely to have News Corp “carved up” and sold off.

“The idea that he’s going to create a dynasty… it ain’t going to happen,” he said. “Shareholders are not going to give the company to someone simply because they have the name Murdoch. The genius of Rupert Murdoch is his ability to keep it all together. Murdoch’s genius dies with him.”

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