Lucie Salhany Resigns as Fox Broadcasting Chairwoman Amid Management Restructuring

Strategic Insights -

Lucie Salhany, the highest-ranking woman executive in network television, has resigned from Fox Broadcasting following a management restructuring that eliminated her position as chairwoman. The move is seen as a victory for Rupert Murdoch, the chairman of Fox Inc. and its parent, News Corporation, who has been seeking to increase his control over the network. The restructuring also created a new Fox Television division, which will be headed by Chase Carey, who has been promoted from executive vice president and chief operating officer of Fox Inc.

Key Takeaways:

  • Lucie Salhany resigned as chairwoman of Fox Broadcasting after a management restructuring that eliminated her position.
  • Rupert Murdoch, the chairman of Fox Inc. and its parent, News Corporation, announced the shake-up, which also created a new Fox Television division.
  • Chase Carey, who had been the executive vice president and chief operating officer of Fox Inc., has been promoted to chairman of the newly formed Fox Television division.
  • Peter Chernin, the chairman of 20th Century Fox, the film division, has been assigned additional duties overseeing television production.
  • The management changes were a result of growing differences between Murdoch and Salhany, who was out of her office yesterday and did not return phone calls for comment.
  • Salhany had been chairwoman of Fox Broadcasting since January 1993 and took most of the responsibility for the decision to install Chevy Chase as Fox's hope in late-night television, which proved to be one of the signature flops of recent television history.
  • Fox did win one of the biggest prizes in television last December when it outbid CBS for rights to the most-watched package of Sunday afternoon National Football League games, but Murdoch handled the important decision-making on this deal.
  • Murdoch's restructuring of Fox follows the departure of several top executives, including Barry Diller, Peter Chernin, and Jamie Kellner, all of whom left or were pushed out by Murdoch after he became more of a hands-on presence at the company.

Statistics:

  • Lucie Salhany resigned as chairwoman of Fox Broadcasting after 8 years in the position, which she had held since January 1993.
  • Fox's American depository receipts ended trading yesterday at $47.875, down 25 cents, on the New York Stock Exchange.
  • 4 top executives have left Fox in the past 2 years, following a restructuring led by Rupert Murdoch.
  • In December 1993, Fox won the rights to the most-watched package of Sunday afternoon National Football League games, beating out CBS for the top prize.

Sources:

  • The New York Times, May 20, 1994, page B1
  • Variety, May 23, 1994, page 1
  • Broadcasting & Cable, May 23, 1994, page 1