A person with direct knowledge of the transition said the elder Murdoch will remain deeply involved in the company, while his sons are to run the rest of the business as a partnership.
Rupert Murdoch will soon hand over the reins of the media dynasty that began with his father's Australian newspaper nearly a century ago to his sons.
The specific timing of the hand-off of 21st Century Fox is unclear. But as James Murdoch prepares to take over as CEO and Lachlan Murdoch as executive co-chairman, some on Wall Street worry about how the pair will run the conglomerate behind Fox News, the Fox broadcast network and the 20th Century Fox movie studio. The moves were expected eventually, but shares were down slightly when news of the changes came on Thursday.
Michael Nathanson, an analyst at research firm MoffettNathanson, said investors will be watching closely for things like whether the company continues to be open with Wall Street, particularly with profit guidance.
"It comes down to what choices they make," he said.
While the timing of the moves had not been expected so soon, they come a year after Murdoch elevated both sons into prominent roles.
In March 2014, James, 42, was promoted to co-COO alongside the elder Murdoch's popular lieutenant Chase Carey, while Lachlan, 43, was named non-executive co-chairman.
Murdoch told employees in an internal memo at the time: "This evolution of our leadership team underscores the considerable planning that both the company and the board have undertaken to ensure a vibrant future for 21st Century Fox and its shareholders."
The 84-year-old patriarch is one of the world's most powerful media magnates and has run the company known as News Corp. since 1979, before it split into two separate entertainment and publishing companies two years ago: News Corp. and 21st Century Fox.
Murdoch, an ambitious executive with a flair for big acquisitions, has been known for upending the media establishment with bold moves, but also for over-paying for assets he sets his sights on.
In recent years, as he's been stung by a phone-hacking scandal by his journalists in the UK in 2011 and the financial decline of his beloved newspapers, Murdoch's role has lessened.
The company started with a single newspaper in Murdoch's native Australia. He expanded it across many media platforms in Britain, the US, Germany, Italy and India.
A person with direct knowledge of the transition said the elder Murdoch will remain deeply involved in the company, while his sons are to run the rest of the business as a partnership.
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