Murdoch Sons' First Challenges: Fix Fox and Win Over Wall Street

Broadcast TV weaknesses will be center stage when James and Lachlan take over July 1 and analysts scrutinize their first moves as the share price lags behind Hollywood rivalsRupert Murdoch's decision to promote sons James Murdoch to CEO and Lachlan Murdoch to executive co-chairman of 21st Century Fox as of July 1 comes as the conglomerate's share price lags behind those of its Hollywood peers. Stock movements can take time, but one thing Wall Street will want to see from Fox is a reversal of that trajectory. A primary issue the Murdochs and their executive team must address is weakness in Fox's broadcasting unit, which reported a 22 percent decline in revenue to $1.2 billion and a 51 percent decline in operating income to $141 million in the most recent quarter. Some of the shortfall can be blamed on the lack of a Super Bowl, but the company also suffered lower overall ratings for the Fox network, leading to a 7 percent decline in ad revenue.