During his time at the Fox News Channel, Bill O’Reilly became the most successful, well-known name in cable news. He unquestionably assisted the network in its astounding rise to the top of the cable-news mountain, so when the owners of Fox News, the Murdoch family, decided in April to dismiss O’Reilly in the wake of news reports revealing O’Reilly had been accused in the past of sexually harassing several women at the company — allegations O’Reilly has firmly denied — they knew they’d, at the very least, take a brief financial hit.
Less than two months after O’Reilly’s departure, the Murdoch family fortune has declined substantially, as investors unsure of Fox News’ future have scrambled to escape what some think is a very slowly sinking ship.
According to an analysis by Forbes of the Murdochs’ fortune, the family’s net worth is estimated to have declined by more than $1 billion since April 1.
Forbes reports the decline is largely due to falling stock price of 21st Century Fox, the parent company of Fox News. On March 28, just a few weeks before O’Reilly was dismissed, the share price of 21st Century Fox was $32.44. On Friday, it was trading around $27.93, a decline of 13.9 percent. About 70 percent of the Murdoch fortune is invested in 21st Century Fox stock.
Investors’ sell-off of Fox stock has been due largely to concerns over whether Fox News, one of 21st Century Fox’s most important businesses, can recover after losing O’Reilly and enduring numerous other scandals. In 2016, Roger Ailes, who had long run Fox News, was forced out of his position amidst claims of sexual harassment and allegations that he mistreated several female employees at the company. (Ailes passed away at the age of 77 on May 18.) On May 19, Fox News co-host Bob Beckel, a longtime Democrat, was fired from the network from making a “racist comment” to an African-American employee.
Bolstered by Fox News’ troubles and numerous unfavorable news stories related to the Trump administration, Fox News Channel’s competitors have gained significant ground on the Murdochs’ network. After years of Fox News dominating CNN and MSNBC, both networks have made significant strides in the key 25-54 demographic. In May, MSNBC beat CNN and Fox News in the key 25-54 demographic during primetime on weekdays for the first time since September 2000, according to Nielsen. However, ratings from the end of May and early June show Fox News may be making a comeback.
Fox News continues to have the largest total cable-news audience, both during the day and in primetime, but the shrinking gap between FNC and its competition has been enough to convince many investors to sell off their stock in Twenty-First Century Fox, a trend that has had a significant financial impact on the Murdoch family.
Justin Haskins
