Summary of this article
· Rupert Murdoch's succession dispute has concluded
· Lachlan Murdoch retains leadership of Fox Corp and News Corp
· Siblings receive $1.1 billion each in compensation
Media tycoon Rupert Murdoch, 94, and his family have settled the legal battle over the control of his media empire. As per the settlement, his son, Lachlan Murdoch, will remain in the leadership position of the global media group. The Australia-born and American nonagenarian holdings include Fox News, The Wall Street Journal, and The New York Post, among others in the UK and Australia. The dispute over who will inherit his estate started in 2023 when he tried to amend the terms of a long-standing family trust that controls Fox Corp and News Corp.
The Dispute And Settlement
The succession dispute pertained to the trust, which granted Rupert's four eldest children, Prudence, Elisabeth, Lachlan, and James Murdoch, equal control over Fox Corp and News Corp. However, when he tried changing the conditions by concentrating control with Lachlan, who currently serves as Fox Corp's executive chairman and News Corp's chairman, the other three children challenged the amendment in the trust condition in the Reno, Nevada probate court. While the court initially allowed the amendment, it later noted the change was in "bad faith". It noted that it was a unilateral decision to alter the irrevocable trust and rules against the amendment.
Who Will Succeed Rupert Murdoch?
Now, the family has reached a settlement under which the three children, Prudence, Elisabeth, and James, will no longer be beneficiaries of the trust and will have no interest in the two companies. The final agreement is done on the condition that they will receive approximately $1.1 billion in compensation each, per several media reports. This will be funded by the sale of shares in Fox Corp and News Corp, worth around $1.4 billion.
At the same time, a new family company controlled by Lachlan will hold a 36 per cent and 33 per cent voting stake in Fox Corp and News Corp, respectively. The new company will buy additional stock from them with a $1 billion loan. The new company, valued at around $3.3 billion, will include Rupert's younger daughters, Grace and Chloe Murdoch, from his third marriage, who will be co-owners alongside Lachlan.
Reportedly, the settlement means that Lachlan Murdoch can lead the company without any risk of his ouster from the company in the future by his siblings. It suggests a continuity of the empire's conservative direction, particularly with Fox News, which has been a dominant force in American cable news.
The court battle caught significant attention from all quarters, which now finally comes to an end.
What Media Publications Does Rupert Murdoch Own?
Murdoch's empire consists of broadcast, digital media, and print, with a consistent conservative editorial stance in his major outlets. His media assets include Fox News (cable news channel in the US), The Wall Street Journal (business newspaper), The New York Post (tabloid newspaper), News Corp (Parent company), The Times and The Sunday Times in the UK (newspaper), The Sun in UK, The Australian and The Herald Sun in Australia, HarperCollins book publishing, and holdings in digital media.
