Rupert Murdoch has taken back the chairmanship of News Ltd, the local arm of his media empire, in a shakeup that includes the resignation of long-time boss John Hartigan.
Foxtel chief executive Kim Williams has been appointed to replace Mr Hartigan at News Ltd, as the company seeks to increase its revenues from news through internet subscriptions.
Mr Murdoch’s return to the chair after three decades may also be part of a move to become non-executive chairman at News Corporation, the global media company that owns News Ltd, as well as Fox News, 20th Century Fox movie studios and Dow Jones.
Independent media analyst Peter Cox said Mr Murdoch’s move could lead to his relinquishing the CEO’s role at News Corp.
“People like Rupert can never take the hands off the control,” Mr Cox told AAP.
“It might take the investment community off his back a bit if he takes a more non-executive role.”
Investors have expressed frustration at Mr Murdoch’s management of News Corp, which his family controls because of a two-class share structure, after the recent phone-hacking scandal that led to the closure of the UK tabloid News of the World.
A majority of independent News Corp shareholders last month voted against the re-election of his sons, James and Lachlan Murdoch, to the media giant’s board.
The changes also come as News Ltd seeks to move from being predominantly a newspaper publisher to being a digital news provider.
Mr Murdoch has put paywalls up at his major newspapers in the UK, US and Australia, including mastheads like The Times, The Wall Street Journal and recently, The Australian.
“News, along with the rest of the industry, has moved into the digital age,” Mr Cox said.
Mr Cox added that the appointment of Mr Williams was a great reward for someone who had built up the business at Foxtel over 10 years.
“He’s driven a subscription business at Foxtel and he’ll drive a subscription business in the future at News Ltd,” Mr Cox said.
Mr Williams, who will become News Ltd CEO on December 5, said in an interview with Sky News that his time at Foxtel had prepared him to take the helm.
“I understand subscriptions. I understand customer value, I understand customer pricing. I understand customer relations,” he said in the interview, shortly after the announcement was made.
Mr Williams, who will take over at News Ltd on December 5, said his appointment reflected the fact that media platforms, such as print, televisions and digital, were converging.
Mr Murdoch said Mr Williams had transformed Foxtel into an innovative and substantial television operation and would drive the transformation at News Ltd.
Mr Hartigan resigned as CEO and chairman after a 41-year career at the publisher, effective on November 30.
Mr Hartigan, who became CEO of News Ltd in 2000, took on the chairman’s role in 2005 after Lachlan Murdoch suddenly resigned.
“John’s decision will end a distinguished 41-year career with News in which he has given us exemplary service and incredible leadership,” Rupert Murdoch said in a statement on Wednesday.
Richard Freudenstein has been appointed CEO of Foxtel, also effective on December 5. He has been chief executive of The Australian newspaper and News Ltd’s digital media business.
