Lachlan Murdoch: CNN, Backed by Ellison, Aiming to Compete with Fox News Amid Challenges in News Management
Lachlan Murdoch on CNN’s Future and Fox News’ Resilience Amid Industry Changes
Fox Corporation CEO Lachlan Murdoch expressed optimism regarding the future of CNN under Paramount’s leadership while asserting Fox News’ ability to maintain its competitive edge. Speaking at the Morgan Stanley Technology, Media & Telecom Conference, Murdoch acknowledged that the transition at CNN could invigorate the network but remained confident in Fox News’ longstanding track record.
"We have been winning, and we win amongst strong competition," Murdoch stated. "Under the Ellisons, CNN obviously will be a strong competitor, as we’d expect. But we like competition, and we’ve proven over many years now that we can – running news is hard."
Murdoch noted that Fox News has been a prominent player in the media landscape for 30 years, with nearly 100 employees having been part of the organization since its inception. "They’re deeply engaged, they’re deeply kind of committed to the business, have tremendous skills, and it shows up in the ratings," he added.
The recent completion of a $110 billion merger, formalized on Friday after Netflix withdrew from the bidding, has sent ripples through the industry. Murdoch was among the first executives to publicly address the implications of this significant merger, which combines CBS News and CNN. This merger is expected to attract attention, especially in the context of evolving coverage strategies.
With uncertainty looming over operational changes, Murdoch identified several factors that will shape the future of the newly combined news entities. "Duplication in many of their operations, a $6 billion companywide target for cost savings, and the political leanings of Paramount’s leaders and investors… will all drive major changes," he explained. Employees at CNN are reportedly bracing for corporate adjustments as the network distances itself from its origins as Ted Turner’s groundbreaking venture.
On the potential industry impact of the merger, Murdoch remarked, “We wish them the best of luck. We’ve seen this regardless, whether it was Netflix acquiring Warner Bros. Discovery, or Paramount acquiring Warner Bros. Discovery. There will be conditions put on this transaction we would expect, which will require a producer of that size to continue to sell their content to third-party platforms like Fox.”
When asked about the implications for the NFL rights deal, which Fox has held for the past 30 years, Murdoch confirmed that the company is amidst preparations for contract renegotiations. The NFL has the option to opt out at the end of the 2029 season, significantly earlier than the contract’s expiration.
Preliminary talks have started between the league and its media partners, with projected increases in rights fees. A recent downgrade of Fox’s stock by a Wall Street analyst pointed to concerns over potential fee hikes from the NFL. "We have four more years on our contract before any kind of presumed opt-out would take effect. So, we feel comfortable with where we are. We think we’re paying market price for the NFL today," Murdoch reassured.
He emphasized that any additional costs tied to NFL programming would ultimately translate to local affiliates and consumers. "To the extent that there was any incremental cost for that NFL programming… the key thing for people to realize is that incremental cost would flow through to local affiliates, to our distributors, and ultimately, to consumers and to fans.”
