Dynastic dysfunction: are family firms too hot to handle?

Investors often shy away from family companies, but some see promise in their grounded management style

SUN VALLEY, ID - JULY 10:Media mogul Rupert Murdoch (C) executive chairman of News Corporation and chairman and CEO of 21st Century Fox; James Murdoch, (R) son ofRupert Murdoch and the deputy
(Image credit: 2013 Getty Images)

THE media world’s favourite King Lear saga took a new twist this week when it emerged that, nearly ten years after abandoning News Corp for his own blasted heath in Australia, Lachlan Murdoch, 42, has returned as heir apparent. He’ll sit alongside his octogenarian father, Rupert, as co-chairman of both the publishing firm and its now separated sister company, 21st Century Fox.

The news is no surprise to seasoned Murdoch watchers, who claim the patriarch has been trying to woo his older son back into the fold for years. Still, given the twists and turns of this particular succession race, it would be premature to rule out the younger son James who, despite being besmirched by the phone-hacking scandal, is said to be “biding his time”. In fact, he also got a leg-up this week, to become the co-chief of Fox. Their sister Elisabeth, once a fancied contender in some quarters, is back to reprising her Cordelia role, having reportedly fallen from favour because of her critical response to the hacking scandal.

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