Lachlan Murdoch has emerged as a serial dealmaker since taking the reins as the heir apparent of his father Rupert’s entertainment empire in 2019, overseeing almost $7bn in acquisitions.
Over the past decade Lachlan and his brother James jockeyed for the role of successor to Rupert, who is now 90 years old, but the question was settled after the break-up of the Murdoch empire through the $71bn sale of the bulk of 21st Century Fox to Disney in March 2019.
Lachlan, 50, now has leading roles at the companies still controlled by the Murdoch family, becoming chief executive of Fox and continuing as co-chair of News Corp, which publishes The Wall Street Journal, The Times and the New York Post.
After the Disney sale, James, 48, left the family business to build his own portfolio of media assets and has since distanced himself from the conservative politics of the news brands controlled by his family.
Since Lachlan cemented his influence over the family empire, entities controlled by the Murdochs have spent almost $7bn on more than 20 acquisitions, according to Financial Times research and data from Refinitiv. James has spent roughly $700m on more than 10 deals.
Lachlan appears to have taken his cue from Rupert, who was known for constant dealmaking that saw him take a small Australian newspaper owned by his father and turn it into a global media colossus spanning the US, Europe and Asia.
After selling most of 21st Century Fox to Disney, the “new Fox” became a much slimmer company, focused more squarely on television broadcasting, news and sport. Since taking over as chief executive, Lachlan has pushed Fox into new areas such as sports betting, blockchain and streaming, through eight acquisitions worth more than $1.5bn.
Last week Fox also bought TMZ, the celebrity gossip site, for less than $50m, according to a person briefed on the deal.
During the Lachlan era, News Corp has been aggressive too, striking $2.9bn in acquisitions since March 2019, with the purchase of Investor’s Business Daily and the Oil Price Information Service.
The Murdochs have also used other holding companies to clinch deals. For instance, REA Group, an Australian subsidiary of News Corp, has made five acquisitions since 2019, while Bridgetown 2 Holdings, an investment group in which the Murdochs have an 18 per cent stake, paid $1.7bn for PropertyGuru.
In total Murdoch-backed entities, including Charlesbank Capital and others, have made $6.9bn in acquisitions since March 2019.
James has also been acquisitive since he announced plans to use his $2bn windfall from the Disney sale to assemble his own portfolio. Through his holding company Lupa Systems, he has invested in Vice Media, the Tribeca Film Festival, a comic book publisher and start-ups aimed at combating fake news.
Last year James quit the board of News Corp, citing “disagreements over certain editorial content published by [the company’s] news outlets”.
Two people who have worked with James in the past said that Rupert’s youngest son was still in the early innings of his career as an investor and was taking a calibrated and prudent approach with the bets he was making.
“James is new to the game,” said a person who was involved in one of the deals completed by Lupa. “He’s not [Warren] Buffett and maybe he’ll never be Buffett, but he’s got a clear idea of the opportunities he wants to target.”
Another person said that comparing the two brothers’ investments record was hard given that Lachlan wielded power at a very cash generative media empire, while James was putting to work part of the proceeds from the sale to Disney.
“It’s not an apples to apples comparison — I know everybody is obsessed with their rivalry because of Succession,” said a person who knows both James and Lachlan, referring to the hit TV show that is in part based on the family.
“But the truth is that they are trying to focus on their own thing,” the person added.
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September 16, 2021 at 04:00PM
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Lachlan Murdoch becomes serial dealmaker at helm of media empire - Financial Times
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