Rupert Murdoch loses attempt to give Lachlan control in family trust overhaul
Rupert Murdoch (on the left) and Lachlan Murdoch (on the right). Images: Rupert Murdoch captured in June 2023. Photo credit: Victoria Jones/PA Wire (left); Reuters/Brendan McDermid (right).
A US court has stopped Rupert Murdoch's efforts to hand over control of his family media business to his oldest son, following a long legal fight with three of his other children.
In a real-life scenario reminiscent of the show "Succession," a 93-year-old media tycoon attempted to alter his family trust but was unsuccessful. This trust grants his four oldest children equal voting rights to manage the organization that oversees News Corp and Fox News once he passes away.
A court commissioner determined that Murdoch and his son Lachlan, who leads Fox News and News Corp, had behaved deceitfully. The commissioner described their actions as a “well-orchestrated facade” aimed at “establishing Lachlan’s power for good,” based on a confidential document obtained by The New York Times.
The disagreement regarding the family trust is not believed to be primarily about money, since Murdoch does not intend to reduce the financial inheritance for any of his children.
Instead, it would have altered the voting influence of his more liberal children and is believed to have been an effort to strengthen a conservative agenda throughout his media empire.
Attorney Adam Streisand, representing Murdoch, informed the newspaper that they intend to challenge the ruling issued by a Nevada court.
Prudence, Elisabeth, and James expressed their thoughts in a statement to the NYT: "We appreciate Commissioner Gorman's decision and are optimistic about moving past this legal dispute so we can concentrate on enhancing and restoring connections among all family members."
In 2006, Murdoch set up a family trust that allows him to keep control of the business throughout his lifetime. After his passing, the voting shares will be divided equally among his four oldest children.
The media mogul, who has tied the knot five times, is also the parent of two younger daughters, Grace and Chloe. While they don't have any say in the voting process according to the arrangement, they hold an equal share in the financial aspects.
Murdoch contended that in order to protect the financial worth of his companies for all of his descendants, the trust needed to be modified. This change would enable Lachlan to keep Fox News' right-leaning perspective.
James and Elisabeth Murdoch are recognized for holding more liberal political beliefs compared to their father and brother.
The situation has highlighted significant divisions within the billionaire Murdoch family and raised concerns about the future of the media company.
The empire covers major media platforms around the globe, such as Fox News, The New York Post, and The Wall Street Journal in the United States, along with The Sun and The Times in the UK.
If all legal efforts don’t succeed, Murdoch and Lachlan might explore different methods to strengthen Lachlan's control, such as the oldest son looking to purchase his siblings' shares in the business.
We have reached out to Murdoch's representatives for a statement.
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