Who will control Murdoch media empire? High-stakes court battle begins
A high-stakes legal dispute over the future of Rupert Murdoch's media empire, and a billion dollar family trust has commenced in the US. The case involves 93-year-old Murdoch and four of his eldest children, Prudence, Elisabeth, Lachlan, and James. The central issue is who will inherit the majority of voting shares and control over News Corp and Fox News, after Murdoch's demise.
Plan to amend family trust
Murdoch reportedly intends to modify a family trust established in 1999, to allow his son Lachlan to assume control without "interference" from his siblings. This proposed change has sparked the ongoing legal battle. The Murdoch family, known for their influence in the media industry, has been suggested as one of the inspirations behind the popular TV series Succession.
Murdoch's younger children and trust agreement
Murdoch, who has been married five times, also has two younger children, named Grace and Chloe. Under the current trust agreement, they do not possess any voting rights. Walter Marsh, an Australian journalist and author of the biography Young Rupert: The making of the Murdoch Empire, suggests that this plan aims to position Prudence, James and Elisabeth on equal footing with Murdoch's two younger daughters.
Media empire and succession plans
Murdoch has been grooming his two sons to take over his media empire since their teenage years, as revealed by journalist Andrew Neil in the 2020 BBC documentary The Rise of the Murdoch Dynasty. Alice Enders, head of research at Enders Analysis, told the BBC that the court battle is "actually about commercial interests." She suggested that a resolution could have been reached if the siblings had agreed to the change or if they had been bought out.
Murdoch Family Trust and voting rights
The Murdoch Family Trust, established in 1999, was intended to largely settle the succession plans. It led to Murdoch assigning his eldest children various roles within his companies. The trust grants the family eight votes, which can be used to influence decisions on the board of News Corp and Fox News. Currently, Murdoch controls four of those votes while his eldest children each hold one vote.
Succession plan and family rift
The trust agreement stipulates that upon Murdoch's death, his votes will be equally distributed among his four eldest children. However, differences in opinions and political views have reportedly caused a family rift. Murdoch stepped down as Fox and News Corp Chairman in favor of Lachlan, who allegedly shares his father's right-wing views. This move has reportedly led to James, Elisabeth, and Prudence uniting in opposition.
Murdoch's court case and family history
The private court case is being conducted at Washoe County Courthouse in Reno, Nevada, US. Media outlets have been excluded from the proceedings, which are expected to include testimony from both Murdoch and the four children named in the trust, over the next week. Prudence is Murdoch's eldest child from his first marriage to Patricia Booker. He had Elisabeth, Lachlan, and James with second wife Anna Mann, while Grace and Chloe are from his third marriage to Wendi Deng.
