, MNE3704 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 - DUE 31 March 2025
CASE STUDY: THE MURDOCH DYNASTY Rupert Murdoch
inherited a modest media business from his father, Keith, but the impact
of death duties and taxes left him nothing but a loss-making newspaper
in Adelaide, Australia. He has transformed this into the world’s largest
media empire. His primary interest, New Corporation, has assets of $56
billion and sales $23 billion in films, newspaper and publishing around
the world. But according to some reports, the problem of succession is
threatening to destabilize his business. Rupert's public favour of his
children over professional management has sent a clear signal to
ambitious employees and investors alike. This is a family company,
family gets priority, and everyone else's interests will always be second.
Rupert Murdoch has six children from three marriages, including
Elizabeth, Lachlan and James from his marriage to Ann, which ended in
divorce in 1999. Lachlan, who managed the New York Post and the Fox
television service, was initially the favourite to head the family business.
But in recent years, first Elizabeth and then James have emerged as
contenders for the succession. Lachlan, a London-born American citizen
was sent to Australia in 1994, where he was chairman and chief
executive of News Ltd, the Australian arm of News Corp. He was
deputy chief executive officer on the main board of News Corporation, a
role that extended his reach well outside of Australia and into the
company’s worldwide interests, but he abruptly resigned this post in
August 2005. The family denied that he quit because of a rift with his
father. Lachlan’s elder sister, Elizabeth, came into reckoning when she
was given a senior job at BskyB, Murdoch’s UK satellite television
company.
Semester 1 2025 - DUE 31 March 2025
CASE STUDY: THE MURDOCH DYNASTY Rupert Murdoch
inherited a modest media business from his father, Keith, but the impact
of death duties and taxes left him nothing but a loss-making newspaper
in Adelaide, Australia. He has transformed this into the world’s largest
media empire. His primary interest, New Corporation, has assets of $56
billion and sales $23 billion in films, newspaper and publishing around
the world. But according to some reports, the problem of succession is
threatening to destabilize his business. Rupert's public favour of his
children over professional management has sent a clear signal to
ambitious employees and investors alike. This is a family company,
family gets priority, and everyone else's interests will always be second.
Rupert Murdoch has six children from three marriages, including
Elizabeth, Lachlan and James from his marriage to Ann, which ended in
divorce in 1999. Lachlan, who managed the New York Post and the Fox
television service, was initially the favourite to head the family business.
But in recent years, first Elizabeth and then James have emerged as
contenders for the succession. Lachlan, a London-born American citizen
was sent to Australia in 1994, where he was chairman and chief
executive of News Ltd, the Australian arm of News Corp. He was
deputy chief executive officer on the main board of News Corporation, a
role that extended his reach well outside of Australia and into the
company’s worldwide interests, but he abruptly resigned this post in
August 2005. The family denied that he quit because of a rift with his
father. Lachlan’s elder sister, Elizabeth, came into reckoning when she
was given a senior job at BskyB, Murdoch’s UK satellite television
company.
