21st Century Fox and News Corp. were supposedly going to move their headquarters at the World Trade Center, but plans have changed. The two Rupert Murdoch-operated companies intend to stay in their Midtown Manhattan offices, which holds its lease until 2020.
The two companies said in a joint statement, "After much careful consideration we have decided to maintain our New York headquarters and other business operations" at 1211 and 1185 Sixth Avenue.
"We have extension options that could continue our occupancy on Sixth Avenue through 2025," the statement also noted.
As it turns out, Fox and News had previously signed a "non-binding letter of intent" back in June, which was to lease 1.3 million square feet of office and studio space at Larry Silverstein's Bjarke Ingels-designed 2 World Trade Center.
In spite of rumors, sources have clarified that the decision not to move to 2 World Trade Center was entirely based on business decisions, and not because of any issues involving the site. The New York Post reports:
"But a source said that 21st Century Fox CEO James Murdoch, Fox and News Corp. Executive Co-Chairman Lachlan Murdoch, and News Corp. CEO Robert Thomson agreed that the complex move would distract from the companies' global operations and require investment 'which would be better directed elsewhere.'"
Furthermore, real estate brokers have told The Post that 1211 Sixth Avenue landloard Callahan Capital Properties gave a "compelling offer" to Fox and News to stay with the building, which included building modernization and public space improvements.
Nevertheless, the offer doesn't indicate negotiations regarding the lease with Callahan past the five-year extension option. Overall, 21st Century Fox and News Corp. have 10 years to plan where they'll be moving once the least extension is up.
Although Silverstein was "disappointed" by the new decision, he still acknowledged and sent his gratitude to the company for considering his upcoming tower.
"I am immensely grateful to the Murdochs and their team, as well as to the Bjarke Ingels Group and our partners at the Port Authority for their inspired work over the past year," Silverstein said.
He added, "Make no mistake, it won't be long before we find a great company to anchor 2 World Trade Center."