This Is Not A Permanent Revolution
Robert Thomson, a close ally of Rupert Murdoch and CEO of the media titan’s News Corp, said the initial “turmoil” of Donald Trump‘s time in the White House is certain to calm down in the coming months.
Speaking at the Morgan Stanley Technology, Media & Telecom Conference, Thomson said the whirlwind early weeks of Trump’s second term have unfolded at a pace that cannot be sustained. He pointed to Monday’s negative reaction to the president’s vow to initiate previously shelved tariffs against Canada and Mexico, calling it a check on the president’s impulsiveness.
The “tariff turmoil” and other sources of “uncertainty” are not “what Chairman Mao used to call a ‘permanent revolution,’” Thomson said. “This is not a permanent revolution.”
Instead, the tariffs are “transactional” measures, the exec reasoned, and “there’s a certain method to the madness. If that’s the case, then in six to nine months’ time, for our businesses and for any business operating in the States or for any global company contemplating investment, the scenario will be somewhat different” than the current one.
News Corp’s media portfolio includes The Wall Street Journal, whose recent editorials have at times directly challenged Trump, calling his tariff plan a step toward “the dumbest trade war in history.” The news outlet has also clashed with Trump advisor Elon Musk after publishing investigative articles about his leadership of Tesla and other companies as well as his oversight of the Department of Government Efficiency.
Other parts of Murdoch’s media empire, especially Fox News at sister entity Fox Corp., have remained ardently supportive of Trump. Over the decade of Trump emerging as a prominent figure in presidential politics, Murdoch’s relationship with him has fluctuated noticeably, but has recently landed in a generally pragmatic place. Thomson himself, during a quarterly earnings call with Wall Street analysts last month, hailed Trump’s election win for lifting the “yoke of woke” from U.S. businesses.
Thomson at the Morgan Stanley event predicted that Corporate America would be able to ride out the storm.
“If you were going in and wanting to disrupt, you would do it at the front end,” he said. “Then hopefully, and obviously the goal, is to change in terms of trade, to reduce the federal bureaucracy spend, etc. etc. Which is why, essentially DOGE has a limited timeline. But we’re in the midst of the early Trump 2 turmoil. The optimistic interpretation is, it’s purposeful turbulence.”
With Trump sensitive to the stock market and consumer price inflation data, “those two things themselves provide a natural discipline,” Thomson argued. “But there’s also no doubt that in the end he wants to be seen as a successful president. And a successful president presiding over four years of chaos is not a successful president. So, I would try to contextualize the upheaval in which we find ourselves. I’m of the more optimistic school, could be proved wrong.”
Rupert Murdoch’s recent decision to step down as chair of Fox Corporation and News Corp has sent ripples through the media landscape, igniting discussions about the future of both companies. His announcement, which came abruptly during a scheduled quarterly earnings call, signals a significant transition not just for Murdoch but also for the two dominant entities that have shaped global media.
Murdoch, who built a vast empire over his decades at the helm, expressed his intention to transition to a more advisory role, confirming that Robert Thomson, the current CEO of News Corp, will step in as the driving force of the companies moving forward. With a storied career that includes leadership roles at several major outlets, Thomson is seen as a pragmatic choice to navigate the evolving challenges faced by the media industry.
The leadership change is occurring against a backdrop of intensifying scrutiny of Fox News and its editorial decisions, particularly surrounding the network’s coverage of former President Donald Trump and his political campaigns. Murdoch himself has had a complex relationship with Trump, balancing support for the businessman while also contending with dissenting views among his audience. Observers note that the new leadership will have to address these dynamics meticulously, ensuring that the network continues to engage its base while avoiding potential pitfalls that could emerge during a contentious election season.
Insiders suggest that while Murdoch’s influence will certainly be felt, his gradual exit from the day-to-day operations is also a strategic move, allowing for a fresh perspective as the media environment shifts. The rise of streaming platforms and changes in viewer behavior have resulted in an adaptation challenge for traditional networks, compelling leaders to rethink strategies and engage audiences in innovative ways.
In his farewell remarks, Murdoch emphasized the importance of continuing the legacy he built while allowing new leadership to inject fresh ideas and approaches into the corporate ethos. As the industry faces seismic changes, the pressure mounts for executives to pivot swiftly, addressing challenges posed by misinformation, changes in consumer habits, and the growing influence of digital competitors.
In its latest quarterly results, News Corp showed signs of resilience amid a demanding climate, with substantial revenues generated through digital channels, particularly in its news and subscription services. Analysts confirm that this pivot to digital has been essential in maintaining profitability and sustaining a steady revenue stream.
Trump, still a central figure in American politics, remains a double-edged sword for Fox News and its parent companies. Speculation surrounds whether Murdoch’s departure will affect the network’s allegiance to Trump, especially as the former president gears up for another presidential campaign. Supporters of Trump emphasize the importance of his relationship with Fox, asserting that the network has played a crucial role in shaping narratives that align with his agenda.
As Murdoch prepares to step back, the ongoing conversation surrounding Trump’s influence emphasizes the complicated fabric of modern media. The need for a delicate balance between editorial integrity and audience engagement has never been more pronounced. Moving forward, both News Corp and Fox will need to navigate these external pressures while defining their voices amid a rapidly changing broadcast landscape.
Thomson’s ability to unify the company’s vision and strengthen its brand identity will be paramount as both outlets seek to maintain relevance in a complex media ecosystem. While it is unclear how the shift in leadership will ultimately play out, industry experts agree that only time will tell how Murdoch’s legacy will endure in the hands of his successors.
