Business Model Innovation
Who owns Fox News? Discover the Murdoch family's control, Fox Corporation's structure, and how the 2019 Disney deal affected ownership in 2024.
When people ask "who owns Fox News," the answer is straightforward: Fox News is owned by Fox Corporation, a publicly traded company controlled by the Murdoch family. Rupert Murdoch and his family maintain decisive control through a dual-class share structure, even though the company trades on the NASDAQ under the ticker symbol FOX. This ownership arrangement gives the Murdochs approximately 40% voting control despite owning only about 14% of the total equity, ensuring the media empire remains firmly under family control in 2024.
Fox News operates as the flagship cable news channel of Fox Corporation, which emerged as an independent entity following the 2019 sale of most 21st Century Fox assets to Disney. The ownership structure is notably concentrated in the hands of the Murdoch family, with Rupert Murdoch serving as chairman emeritus after stepping down from active leadership in late 2023.
Fox Corporation's Class B shares carry supervoting rights, with 10 votes per share compared to the single vote per share for Class A stock. The Murdoch Family Trust holds the overwhelming majority of these Class B shares, translating to approximately 42% of voting power across Fox Corporation. This structure allows the family to maintain control over corporate decisions, including editorial direction and strategic planning for Fox News.
The remaining shareholders include major institutional investors such as Vanguard Group, BlackRock, and State Street Corporation, which collectively hold substantial positions in the publicly traded Class A shares. However, these institutional investors lack the voting power to challenge Murdoch family decisions due to the dual-class structure.
Following Rupert Murdoch's retirement from active management in September 2023, his son Lachlan Murdoch assumed the role of sole chairman and CEO of Fox Corporation. This transition represents a crucial moment in Fox News ownership, as Lachlan has consolidated power as the designated successor to guide the network's future.
Fox News Channel launched on October 7, 1996, as part of Rupert Murdoch's News Corporation. The channel was conceived by Murdoch and Republican media consultant Roger Ailes, who served as the network's founding CEO. From its inception, Fox News operated under the complete control of News Corporation, Murdoch's global media conglomerate that included newspapers, film studios, and television networks.
The ownership structure remained relatively stable for nearly two decades until a significant corporate reorganization in 2013. News Corporation split into two separate publicly traded companies: 21st Century Fox, which retained the entertainment and television assets including Fox News, and News Corp, which housed the publishing properties including The Wall Street Journal and New York Post. The Murdoch family maintained controlling stakes in both entities through the same dual-class share structure that continues today.
This separation created a clearer focus for each business segment while preserving family control. Fox News continued to flourish under 21st Century Fox ownership, becoming the most-watched cable news network in the United States and generating substantial profits that helped fund other corporate ventures.
The most transformative ownership change came with the 2019 Disney acquisition, which fundamentally restructured the Murdoch media empire. However, Fox News was specifically excluded from this transaction, remaining under Murdoch family control through the newly created Fox Corporation. This decision reflected both regulatory concerns and the Murdoch family's commitment to maintaining their television news operations.
The March 2019 acquisition of 21st Century Fox by The Walt Disney Company for approximately $71.3 billion stands as one of the largest media mergers in history. However, a critical misunderstanding persists: Disney did not acquire Fox News. The transaction specifically excluded Fox News Channel, Fox Business Network, Fox Broadcasting Company, and Fox Sports networks.
Disney's acquisition included 21st Century Fox's film and television studios, cable entertainment networks like FX and National Geographic, international television operations, and Fox's stake in Hulu. These assets aligned with Disney's streaming ambitions and content expansion strategy. Fox News, however, posed regulatory challenges and didn't fit Disney's corporate strategy or brand identity.
Prior to the Disney deal's completion, 21st Century Fox executed a spinoff that created Fox Corporation as a new, independent publicly traded company. This "New Fox" received the assets Disney wasn't acquiring, primarily Fox News, Fox Business, Fox Broadcasting Company, Fox Sports, and various local television stations. Shareholders of 21st Century Fox received shares in both Disney and the newly formed Fox Corporation.
The transaction actually strengthened the Murdoch family's control over Fox News. With Fox Corporation operating as a smaller, more focused company, the family's 42% voting stake translated to more direct influence over a news-centric operation. The deal generated substantial wealth for the Murdochs while allowing them to retain what many consider their most politically influential asset.
For Fox News specifically, the change meant operating within a leaner corporate structure. Fox Corporation's market capitalization of approximately $16-18 billion makes it significantly smaller than its predecessor, but Fox News remains the primary profit driver, contributing an estimated 50-60% of the parent company's operating income.
Fox Corporation operates as a streamlined media company focused primarily on news, sports, and broadcast television. The company trades publicly on the NASDAQ under ticker symbols FOX (Class A shares) and FOXA (Class B shares), with a market capitalization that has ranged between $15 billion and $20 billion since its 2019 creation.
The corporate structure divides into several key divisions. Fox News Media encompasses both Fox News Channel and Fox Business Network, representing the company's most profitable segment. Fox Television includes the Fox Broadcasting Company, which operates the Fox broadcast network and 29 owned-and-operated local television stations in major markets. Fox Sports covers the company's remaining sports broadcasting operations, though significantly reduced after selling most regional sports networks.
Revenue distribution reveals Fox News' dominance within the corporate structure. For fiscal year 2023, Fox Corporation reported total revenues of approximately $14 billion, with the cable network programming segment (primarily Fox News and Fox Business) generating roughly $6.7 billion. The affiliate fees that cable and satellite providers pay to carry Fox News contribute approximately $1.8-2.0 billion annually, while advertising revenue adds another $1.5-1.8 billion.
The corporate governance structure reinforces Murdoch family control. Fox Corporation's board includes both family members and independent directors, but the supervoting Class B shares ensure that key decisions require Murdoch approval. Lachlan Murdoch serves as both chairman and CEO, a combination that concentrates executive authority. The board of directors includes longtime Murdoch associates and business leaders, but their influence remains subordinate to the family's voting power.
Fox Corporation maintains a relatively conservative balance sheet compared to many media companies. With modest debt levels and strong cash generation from Fox News, the company has returned substantial value to shareholders through dividends and stock buybacks while maintaining financial flexibility for potential acquisitions or investments.
The Murdoch family's grip on Fox News operates through a carefully structured trust arrangement that extends beyond Rupert Murdoch's lifetime. The Murdoch Family Trust holds the supervoting Class B shares, which carry disproportionate voting power across both Fox Corporation and News Corp. This structure has proven remarkably effective at maintaining dynastic control over media assets spanning continents and generations.
Rupert Murdoch, now in his nineties, served as the architect of this media empire. Born in Australia in 1931, he inherited a regional newspaper from his father and transformed it into a global media conglomerate. His aggressive expansion strategy and willingness to challenge establishment media created Fox News as a conservative-leaning alternative to CNN and other networks. Even in semi-retirement, Rupert's influence permeates Fox News' strategic direction.
Lachlan Murdoch, Rupert's eldest son, has emerged as the primary heir to the Fox News empire. After assuming sole leadership of Fox Corporation in 2023, Lachlan controls day-to-day operations while maintaining the network's editorial positioning. His leadership style appears more reserved than his father's but equally committed to Fox News' conservative brand identity. Lachlan owns an estimated net worth exceeding $2 billion, largely derived from his stakes in family-controlled companies.
The Murdoch Family Trust currently benefits six individuals: Rupert and his four eldest children from his first two marriages - Lachlan, James, Elisabeth, and Prudence. Each child holds an equal say in the trust's voting decisions following Rupert's death. However, recent reports indicate Rupert has attempted to modify the trust to give Lachlan sole control, recognizing that James Murdoch's more liberal political views conflict with Fox News' conservative orientation.
James Murdoch resigned from the News Corp board in 2020, citing disagreements over editorial content, particularly regarding climate change coverage and the 2020 election. His departure reduced internal family tensions but raised questions about trust governance. Elisabeth and Prudence have maintained lower profiles in the media business, though they retain trust beneficiary status.
Beyond the Murdoch family's controlling stake, Fox Corporation's shareholder base includes major institutional investors who hold significant economic interests despite limited voting power. The following table illustrates the major shareholders as of 2024:
| Shareholder | Type | Approximate Holdings | Voting Power |
|---|---|---|---|
| Murdoch Family Trust | Family Trust | 14% of equity, 42% voting | 42% |
| Vanguard Group | Institutional | 10.8% of Class A | ~6% |
| BlackRock | Institutional | 8.2% of Class A | ~5% |
| State Street Corporation | Institutional | 5.4% of Class A | ~3% |
| Other Institutional/Retail | Various | ~61% of Class A | ~44% |
The Vanguard Group stands as the largest institutional shareholder, holding approximately 10.8% of outstanding Class A shares through various index funds and investment vehicles. This stake represents significant economic exposure to Fox Corporation's performance but translates to only about 6% of voting power due to the dual-class structure. Vanguard's holdings primarily reflect passive index fund positions rather than activist investment.
BlackRock's position of roughly 8.2% similarly derives from index fund management and institutional investment mandates. Despite being the world's largest asset manager, BlackRock exercises minimal influence over Fox News' strategic direction. The company has occasionally engaged with Fox Corporation on corporate governance issues, but the Murdoch family's supervoting shares limit institutional shareholder influence.
State Street Corporation, another major index fund provider, holds approximately 5.4% of Class A shares. Smaller institutional investors include various pension funds, hedge funds, and mutual fund companies that collectively own the majority of freely traded Class A shares.
Individual retail investors hold a meaningful but fragmented portion of Fox Corporation stock. The company's inclusion in major indices like the S&P 500 ensures continued institutional demand, supporting stock liquidity and valuation. However, no coalition of minority shareholders can effectively challenge Murdoch family control without Class B share support.
The shareholder structure creates an interesting dynamic where economic ownership diverges from voting control. Institutional investors benefit financially from Fox News' profitability but cannot influence editorial decisions or corporate strategy. This arrangement has occasionally drawn criticism from governance advocates who prefer one-share-one-vote structures, but it remains legal and relatively common among media and technology companies.
Fox News operates as a remarkably profitable business, generating revenue through two primary streams: affiliate fees and advertising. The network's financial performance has made it the most valuable asset within Fox Corporation, consistently delivering industry-leading profit margins.
Affiliate fees represent Fox News' largest and most stable revenue source. Cable and satellite television providers pay Fox News approximately $2.00-2.50 per subscriber per month to carry the channel. With roughly 75-80 million subscribers across various distribution platforms, this generates annual affiliate revenue approaching $2 billion. These fees continue even when viewers don't watch Fox News, creating a reliable base revenue stream largely insulated from ratings fluctuations.
Advertising revenue contributes another $1.5-1.8 billion annually, though this amount varies based on ratings performance and advertiser demand. Fox News has maintained its position as the most-watched cable news network for over 20 consecutive years, delivering valuable demographics to advertisers. Prime-time programming commands premium advertising rates, particularly during major news events that drive viewership spikes.
The network's profit margin stands among the highest in television news, estimated at 50-55% of revenue. This translates to operating income exceeding $2 billion annually from a business requiring relatively modest capital investment. News production costs less than scripted entertainment programming, and Fox News has refined an efficient production model over decades.
Digital operations represent a growing revenue component. FoxNews.com ranks among the most-visited news websites in the United States, generating advertising revenue and subscription income through Fox Nation, a streaming service offering exclusive content for $5.99 per month. While digital revenue remains smaller than traditional television income, it represents an important growth avenue as media consumption habits evolve.
The network's profitability faces potential headwinds from cord-cutting, as younger consumers abandon traditional cable subscriptions. Fox News has lost approximately 15-20 million subscribers over the past decade as cable penetration declined. However, the remaining subscriber base tends to be older, more affluent, and less likely to cut the cord, partially insulating Fox News from the industry's broader decline.
Legal settlements have occasionally impacted profitability. Fox News paid $787.5 million to settle a defamation lawsuit with Dominion Voting Systems in 2023, related to false claims about the 2020 election. This represented a significant one-time expense but didn't fundamentally alter the network's profitable operational model.
Understanding Fox News' position requires clarifying the relationship between Fox Corporation and News Corp, two separately traded companies both controlled by the Murdoch family. Following the 2013 corporate split, these entities operate independently while sharing family governance.
Fox News operates under Fox Corporation, which focuses exclusively on television and does not include print or digital publishing assets. The network serves as Fox Corporation's flagship property and primary profit generator, contributing more than half of the company's operating income. This makes Fox News essential to Fox Corporation's financial health and strategic direction.
News Corp, the separate Murdoch-controlled entity, owns publishing assets including The Wall Street Journal, New York Post, HarperCollins Publishers, and News Corp Australia. The two companies occasionally collaborate on content and share certain philosophies, but they maintain separate management teams, boards, and strategic priorities. Lachlan Murdoch chairs both companies, providing coordination, but they operate distinct business models.
Within Fox Corporation's portfolio, Fox News occupies the premium position. The Fox broadcast network generates substantial revenue but operates in a more competitive environment with slimmer margins. Fox Sports, while valuable, lost significant assets in sales of regional sports networks. The local television stations provide steady income but lack Fox News' growth profile.
This positioning gives Fox News outsized influence over Fox Corporation's strategy and valuation. Analysts value Fox Corporation largely based on Fox News' performance, with the cable news network representing an estimated 60-70% of the company's enterprise value. Strategic decisions about Fox Corporation inevitably center on protecting and enhancing Fox News' market position.
The network's editorial independence within this structure has sparked occasional controversy. Critics argue that family control allows editorial decisions based on political preferences rather than purely journalistic standards. Supporters counter that this independence from corporate oversight enables Fox News to serve its audience without interference from advertisers or activist shareholders.
Fox News' management structure combines longtime network veterans with newer executives adapting to a changing media landscape. Suzanne Scott serves as CEO of Fox News Media, overseeing both Fox News Channel and Fox Business Network. Scott joined Fox News at its 1996 launch and rose through the ranks, becoming CEO in 2018. Her leadership focuses on maintaining ratings dominance while managing various controversies and expanding digital operations.
Jay Wallace serves as president and executive editor of Fox News, responsible for news programming and editorial standards. Wallace, another longtime Fox News employee, oversees the network's newsgathering operations and coordinates with on-air talent. His role involves balancing opinion programming that drives ratings with straight news reporting that maintains credibility.
The on-air talent represents crucial corporate assets. Hosts like Sean Hannity, Tucker Carlson (until his 2023 departure), Laura Ingraham, and Jesse Watters drive evening ratings and command substantial salaries. Sean Hannity reportedly earns over $40 million annually, reflecting his value to the network's prime-time lineup. These personalities often wield significant influence beyond their official roles, with some maintaining direct relationships with Murdoch family members.
Lachlan Murdoch maintains active oversight of Fox News despite managing Fox Corporation's broader portfolio. He regularly communicates with network leadership and occasionally intervenes in major decisions, particularly those involving legal exposure or significant controversy. His involvement ensures Fox News aligns with family strategic priorities.
The leadership team has faced substantial challenges in recent years. The network paid substantial settlements for sexual harassment and racial discrimination claims, leading to management changes and new human resources policies. The $787.5 million Dominion defamation settlement in 2023 triggered internal scrutiny of editorial processes and fact-checking procedures.
Tucker Carlson's unexpected departure in April 2023 illustrated the complex dynamics between on-air talent and corporate management. Despite being the network's highest-rated host, Carlson's exit reportedly resulted from concerns about legal liability and tensions with Fox Corporation leadership. His departure demonstrated that even valuable personalities remain subordinate to corporate control.
The future ownership of Fox News hinges on Murdoch family succession planning and the structure of the family trust. Rupert Murdoch's attempted modification of the trust to favor Lachlan Murdoch has sparked legal proceedings in Nevada, where the trust is governed. This effort reflects concerns about maintaining Fox News' conservative editorial positioning after Rupert's death.
Under the current trust arrangement, Rupert's four eldest children would share equal voting control following his death. This structure creates potential for conflict, given James Murdoch's public disagreements with Fox News' editorial direction. Lachlan's leadership of Fox Corporation positions him as the operational successor, but trust governance could complicate strategic decisions if siblings disagree.
The Nevada probate court proceedings, reported in 2024, will determine whether Rupert can unilaterally modify the trust to give Lachlan sole control. Legal experts suggest such modifications face high barriers unless all beneficiaries consent or the trust documents explicitly permit changes. The outcome could fundamentally shape Fox News' long-term ownership structure.
Beyond family succession, Fox Corporation faces strategic questions about Fox News' future in a fragmenting media landscape. The network's core audience skews older, raising questions about attracting younger viewers without alienating existing fans. Streaming services and digital platforms challenge traditional cable distribution, potentially undermining the affiliate fee model that generates substantial revenue.
Fox Nation, the streaming service launched in 2018, represents one strategic response. The platform offers Fox News content without requiring a cable subscription, potentially reaching cord-cutters while generating direct subscription revenue. However, Fox Nation's subscriber count remains modest compared to major streaming platforms, and its success depends on convincing loyal viewers to pay for content beyond their cable subscriptions.
Potential acquisition scenarios occasionally surface in media speculation. Some analysts suggest Fox Corporation could eventually merge with another conservative media platform or be taken private by the Murdoch family. However, the family's financial resources and the company's substantial public float make a full privatization unlikely without external financing.
International expansion presents another growth avenue. Fox News focuses overwhelmingly on U.S. audiences, with limited international presence compared to CNN or BBC. Expanding global distribution could increase revenue but would require adapting content for different markets and regulatory environments.
The dual-class share structure protects against hostile takeovers but also limits strategic flexibility. The Murdoch family can maintain control indefinitely, but eventually, generational transfers and estate planning will require decisions about whether to preserve family ownership or allow more dispersed ownership structures.
Does Rupert Murdoch still own Fox News?
Yes, Rupert Murdoch and his family maintain control of Fox News through Fox Corporation's dual-class share structure. Although Rupert stepped down as chairman in September 2023 and his son Lachlan now serves as CEO, the Murdoch Family Trust holds approximately 42% voting control of Fox Corporation. Rupert remains chairman emeritus and influences major strategic decisions.
Did Disney buy Fox News?
No, Disney did not acquire Fox News in the 2019 transaction. Disney purchased most of 21st Century Fox's entertainment assets for $71.3 billion, including film studios and cable entertainment channels, but Fox News was specifically excluded. Fox News remained under Murdoch family control through the newly created Fox Corporation, which was spun off to existing shareholders before the Disney deal closed.
What's the difference between Fox News and Fox Broadcasting Company?
Fox News is a cable news channel requiring a cable or satellite subscription, while Fox Broadcasting Company operates the free over-the-air Fox broadcast network. Both are owned by Fox Corporation but serve different functions with distinct content. Fox Broadcasting airs entertainment programming, sports, and local news, while Fox News focuses exclusively on 24-hour cable news coverage with a conservative-leaning perspective.
How much is Fox News worth?
While Fox News itself is not separately valued as a public company, analysts estimate it represents 60-70% of Fox Corporation's total enterprise value. With Fox Corporation's market capitalization ranging between $15-20 billion, this suggests Fox News is worth approximately $10-14 billion as a standalone asset. The network generates over $2 billion in annual operating income, making it one of the most profitable news operations globally.
Who will inherit Fox News when Rupert Murdoch dies?
Under the current Murdoch Family Trust structure, Rupert's four eldest children (Lachlan, James, Elisabeth, and Prudence) would share equal voting control of the trust that controls Fox Corporation. However, Rupert has reportedly attempted to modify the trust to give Lachlan sole control, which has led to legal proceedings in Nevada. The outcome of these proceedings will determine the succession structure and future family control of Fox News.
Fox News remains firmly under Murdoch family control through Fox Corporation's carefully structured ownership arrangement. The dual-class share system ensures that despite being a publicly traded company, strategic decisions about Fox News rest with the family rather than dispersed public shareholders. Lachlan Murdoch's ascension to sole leadership marks a generational transition, but the fundamental control structure persists.
The network's financial performance continues to justify this valuable asset's importance to the family's media empire. Generating over $2 billion in annual operating income with industry-leading profit margins, Fox News serves as Fox Corporation's financial engine. This profitability provides resources for dividends, stock buybacks, and strategic investments while maintaining the network's market-leading position.
Future ownership structure will ultimately depend on Murdoch family succession planning and potential trust modifications. The legal proceedings regarding trust governance could reshape control dynamics, particularly regarding potential disagreements among siblings. However, regardless of internal family arrangements, the supervoting share structure protects against external challenges to family control for the foreseeable future.
