Rupert Murdoch's memo announcing Peter Chernin departure

Rupert Murdoch issued the following memo to News Corp. employees to announce that Peter Chernin would not be renewing his contract:

February 23, 2009

Dear Colleagues:

Today, we are announcing that Peter Chernin, our President and COO, will not be renewing his employment contract. Peter will be taking up the opportunity to start a new motion picture and television production venture with Fox.

Many of us who have worked with Peter over his 20 years with the company can attest to his leadership, his diligence, and his wisdom. I can also testify to Peter’s friendship, dedication, and honesty. He has been a close colleague and an ally to me for many years.

While Peter has distinguished himself at News Corp, he has also, increasingly and tirelessly, circled the globe in support of Malaria No More, which has achieved nothing short of remarkable results. Let us all wish him the best of luck, and the greatest success, as he embarks on this new chapter of his career, both as a professional and as a role model for an executive who gives back.

As you all know the downturn we are operating in is more severe and global than anything we have seen before. No company is immune to its effects. I want to take this opportunity, today, to write to you about how we will manage such an important leadership transition, and why I am convinced that today our company is not only well-positioned financially and competitively, but is on the cusp of a new phase of growth. Remember, we began priming ourselves for a weakening economy over a year ago. We have managed expenses and capital expenditure prudently, and strengthened our balance sheet. Following the partial sale of NDS, we will have over five billion dollars in cash, and this year we should exceed $3.5 billion in adjusted operating income.

In the past, we have met downturns with vigor, often departing from the herd. We have emerged much stronger. 

Achieving our ambitions will require change and renewal. So throughout 2009, I will continue to work closely with all of our companies to make sure that we are organized and resourced in the best20way to take advantage of this extraordinary point in time. We will press our advantages and invest in our great franchises. And, of course, we will keep our eyes on big prizes, some of which may arise only once in a generation.

Across News Corp. we have a broad and deep reservoir of extremely able executives. 

Over the years we have accomplished great things. People understand, and have acknowledged, our entrepreneurial spirit as well as our doggedness; our willingness to take risks, our contrarian investment style; and our commitment to long-term development and shareholder value.

Many of you have told me how hungry you are to work more closely across our companies. Many of us have been frustrated by the things that can get in the way of that. From systems that don’t talk to each other to incentives that struggle to capture the opportunity and aspiration of our total group. These obstacles are obvious to us all. There will be a streamlined management structure between our Los Angeles-based business units and the rest of the company. Peter and I will be communicating more on this over the next few months. For the time being, of course, the talented executive team at the Fox Group will continue to report to Peter.

Now is also an ideal opportunity to streamline and enhance many of the corporate and administrative functions of the business. There will be cost savings as a result, but the more important aim is to be leaner so that we can better leverage our collective talent and expertise. For instance, and beginning immediately, H.R. functions throughout all our units will report to Beryl Cook in New York as well as their division heads.  Beryl reports directly to me. 

We have worked hard to develop and advance the best among us. The renewal of great companies begins within themselves. Pursuing an edge through superior talent is a priority. This will be a key focus for us in 2009.

In the coming months, I will be reaching out to you with new questions, and with new plans.

We are in the midst of a phase of history in which nations will be redefined and their futures fundamentally altered. Many people will be under extreme pressure and many companies mortally wounded. Our competitors will be sorely tempted to take the easy beat, to reduce quality in the search for immediate dividends.

Let me be very clear about our company: where others might step back from their commitment to their viewers, their users, readers and customers -â€" we will renew ours. 

The direction of the business now and over the next few years will define the character of our company for decades.

We have always thrived on change and challenge. This was true when we began building a newspaper business in Australia. Just as it was when we created BSkyB and developed a fourth U.S. network, the Fox Network, when conventional wisdom dictated that there was room for only three players. It was true when we launched Star, now the leading network in India, and the Fox News Network and Sky Italia.

The best things we have done, and there are many examples, have defied conventional wisdom, often in the teeth of fierce opposition and near universal disbelief in our capabilities.

Over the past 12 months I have spent time with you in India and China, in Italy and the UK and many other countries. We have brought Dow Jones into the fold, extended our influence in Europe, and been at the center of reporting the arrival of a new American president and the impact of the global financial crisis. We’ve told extraordinary stories, in theaters around the world and on page and screen from Mumbai to Malibu. 

Our own international reach is a profound strength. We have intelligent, creative and highly motivated colleagues around the world who are ambitious for themselves, for their countries, for our customers and for our company. The result is that where others simply seek distribution, we are building durable businesses at scale. We are also creating large franchises in marketplaces that will grow at a faster pace in the coming years and, increasingly, our businesses are based on direct customer relationships.

We must always be acutely aware of our responsibility to shareholders, and to create real value for them. This is entirely consistent with, and in many cases inseparable from, the enormous social value we have created over the decades. We provide information and entertainment to billions, enabling them to improve their lives and those of their families.  There is genuine value in the values of our company -â€" these are values that are even more important in a world confronting so much today

We believe in communities. The very idea of community is broad, and encompasses interests that cross national, ethnic and demographic borders. We are all members of many different communities, whether it be of people who are passionate about Hollywood films, or care about living in a healthy environment, or use a local jobs website, or trade commodities in Chicago and London, relish soccer whether in China or Nigeria. These communities are our communities, as they read, evaluate and create everyday.

That is why, most of all, I believe in the community that is our company.

Rupert Murdoch

(Photo: Rupert Murdoch. Credit: Adrian Moser/Bloomberg New)

CW renews 6 shows, including 'Supernatural,' 'Gossip Girl' and '90210'

The CW has renewed several of its shows. Here's the roster of what is definitely coming back next fall: "Supernatural" (yay), "Smallville," "Gossip Girl," "One Tree Hill," "Gossip Girl" and "America's Next Top Model," which has never, to my knowledge, produced even one top model, but who's counting?

The network is also bringing back the freshman soap "90210." What's the verdict, readers, is this a guilty-pleasure soap or a total waste of time? I haven't watched it in ages, so I want to hear from you if you have been checking out the "90210" remake.

There's no news yet on whether these CW shows will get another season: "Privileged," "The Game" and "Everybody Hates Chris."

As noted here, the "Privileged" finale airs Tuesday. I'm rooting for this show to get another season, not just because it can be so charming and funny but because there aren't enough shows with female characters that I want to spend time with.

And as creator Rina Mimoun says in this interview with the Futon Critic, JoAnna Garcia really is a very talented actress and can do anything the show's writers throw at her. 

The CW's Tuesday press release is below.

THE CW ANNOUNCES EARLY PICKUPS OF SERIES 

“Gossip Girl,” “One Tree Hill,” “90210,” “America’s Next Top Model,” “Smallville” and “Supernatural” To Return Next Season

February 24, 2009 (Burbank, California) â"€ The CW announced today the early pickups of six series, including five of the network’s signature dramas and the reality hit AMERICA’S NEXT TOP MODEL, which will all return in Fall 2009.

“As we continue to build The CW Network as a destination for young women, these six shows have clearly contributed to strengthening our schedule and our brand identity,” said Dawn Ostroff, President, Entertainment, The CW.  “By securing these signature hits for next season, we’re furthering our commitment to deliver high-quality, original programming to our viewers, advertisers and affiliates.”

Among the series receiving early pickups for next season are The CW’s Monday tandem of sophomore sensation GOSSIP GIRL and ONE TREE HILL, which combined to lift The CW to become the fall’s #1 network on Monday with women 18-34.  Both GOSSIP GIRL and ONE TREE HILL have scored double-digit gains compared to their previous seasons.  Freshman hit 90210 has improved the network’s Tuesday night by double-digit increases in key demos.  Wednesday anchor AMERICA’S NEXT TOP MODEL, which consistently wins its time period with young women, will also be back with superstar Tyra Banks and new groups of aspiring models for cycles 13 and 14.

Also renewed were the network’s established Thursday team of SMALLVILLE, which will be going into its ninth season, and SUPERNATURAL, which after posting ratings growth this  season, will enter its fifth season next year.

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