Rupert Murdoch is blocked from amending trust to place son in charge of Fox News media empire
December 10, 2024 / 10:43 AM Eastern Standard Time / Associated Press
A probate commissioner has decided against Rupert Murdoch's attempt to alter his family's trust in order to grant one of his sons control over his media businesses and to make sure that Fox News continues to uphold its conservative editorial stance, as revealed in a confidential document acquired by The New York Times.
On Saturday, a probate commissioner in Nevada determined that Murdoch, aged 93, and his son Lachlan had behaved in "bad faith" while trying to change the irrevocable trust, according to a report by The New York Times on Monday.
The trust splits the management of the company evenly among Rupert Murdoch's four children: Prudence, Elisabeth, Lachlan, and James, following his passing. Lachlan Murdoch took over as the leader of Fox News and News Corp late last year after his father resigned.
The senior Murdoch has claimed that in order to safeguard the financial worth of his businesses for all of his children, adjustments to the trust are necessary so that Lachlan Murdoch can keep Fox News aligned with its conservative principles. James and Elisabeth Murdoch are recognized for having more liberal political beliefs compared to their father and brother, which could complicate the goal of keeping Fox News firmly in the conservative camp.
In a detailed 96-page ruling, Nevada Probate Commissioner Edmund J. Gorman Jr. of the Second Judicial District Court described the proposal to alter the trust as a "well-orchestrated facade" aimed at "solidifying Lachlan Murdoch's leadership positions" within the organization. He highlighted that this move would be made without regard for the effects it might have on the companies involved or the family trust's beneficiaries.
Adam Streisand, Rupert Murdoch's attorney, informed the newspaper that both Murdoch and his son were dissatisfied with the decision and plan to challenge it.
A representative for Prudence, Elisabeth, and James Murdoch expressed via email to The Associated Press that they are pleased with the decision and are optimistic that their family can "put this legal matter behind them and concentrate on mending and enhancing relationships among all family members."
In his closing remarks, Gorman stated: "This effort seemed aimed at ensuring that Lachlan Murdoch would have an unchangeable advantage after Rupert Murdoch's death, solidifying his position. It might have succeeded; however, an evidentiary hearing is like a tense moment in poker, where strategy meets reality. By the end, all deceptions are revealed and the true situation is laid bare."
He went on to say, "After reviewing the details of this case within the framework of the law, the court understands the situation clearly and determines that this unfair arrangement will not be accepted under the authority of this probate commissioner."
