Murdoch may hand Fox CEO title to son

Rupert Murdoch is preparing to step down as chief executive officer of 21st Century Fox Inc. and hand the title to his son James, according to a source familiar with the matter, confirming a long-expected generational succession.

Murdoch, the company’s 84-yearold founder, will remain chairman, said the source, who asked not to be identified because the deliberations aren’t public. The changes will include the appointment of Murdoch’s older son, 43-year-old Lachlan, to the role of co-executive chairman.

“The matter of succession is on the agenda at our upcoming, regularly scheduled board meeting,” Fox said in a statement Thursday.

The Murdochs control Fox, which owns film, cable and broadcast businesses, through a family trust, as well as News Corp., owner of the Wall Street Journal. A phone-hacking scandal at their now-defunct News of the World newspaper four years ago led to questions in the U.K. about their fitness to lead a media empire and forced the Murdochs to abandon efforts to buy Sky Plc, the European pay-TV provider.

“It’s a logical succession,” Mario Gabelli, chairman and founder of Gamco Investors, said. The Murdochs “control the vote. This is expected.”

The elder Murdoch will still drive strategy at Fox, according to the person. James, 42, is currently the cochief operating officer with Chase Carey, who is expected to stay on in an advisory role, the person said.

“Chase Carey has done a fantastic job,” said Gabelli, a longtime media investor whose company owns both voting and non-voting shares of Fox. “I don’t think very much changes in terms of allocating of capital.”

Succession in family companies raises questions of corporate governance, according to Doug Creutz, a Cowen & Co. analyst who has a neutral rating on Fox shares. Best practices would involve a search by the board to find the best candidate for the position, he said Thursday.