Rupert Murdoch has decided to transfer control of his family trust to his eldest son, Lachlan, igniting a fierce legal dispute among his children that could influence the future of two major media corporations. According to three people familiar with the matter, the 93-year-old media mogul has moved to amend the irrevocable family trust to give Lachlan full control of its voting powers and decision-making authority after his death.
Thank you for reading this post, don't forget to subscribe!Lachlan, who assumed leadership of Fox and News Corp last year when his father stepped down as chairman, would be granted complete control under the proposed changes. Previously, the trust’s control was intended to be shared among Murdoch’s four eldest children: Lachlan, James, Elisabeth, and Prudence. One insider noted that this move appears to “disenfranchise the three children” and leave them without power.
A Nevada probate commissioner has ordered a court hearing to determine whether the trust amendments are made in good faith and benefit all of Murdoch’s children. This hearing is expected to take place in September. The New York Times first reported on the family dispute and the commissioner’s decision. Murdoch reportedly argued that the changes aim to protect the business’s value for his heirs.
The proposed adjustments have reignited longstanding family tensions, particularly with James, who has become estranged from his father after losing a succession battle to Lachlan. James and his sisters are considered more politically moderate than Rupert and Lachlan, with the changes purportedly aiming to secure a conservative direction for Fox and News Corp news outlets, including Fox News.
James Murdoch, who left his roles at Fox and News Corp in 2019 and 2020 respectively, has been openly critical of the media’s role in promoting divisive politics and supported Joe Biden’s 2020 presidential campaign. The trust, established following Rupert Murdoch’s 1999 divorce from Anna Torv, mother of Lachlan, Elisabeth, and James, originally granted each of the four children equal voting rights after Rupert’s death. Grace and Chloe, Rupert’s children from his marriage to Wendi Deng, have an economic interest but no voting control.
While Lachlan’s three eldest siblings could theoretically unite to block his decisions, they may not be fully aligned on broader issues. They are represented by Gary Bornstein, co-head of litigation at Cravath, Swaine & Moore. An insider remarked, “This is not the intention of the trust that was set up. It’s not what the family had agreed.”
Speculation about a family rift had already surfaced when James, Elisabeth, and Prudence did not attend Rupert’s recent wedding. The trust previously considered options to buy out James following the sale of Fox’s 21st Century Fox entertainment assets to Disney.
Representatives for Rupert Murdoch and Fox referred inquiries to Adam Streisand, a lawyer at Sheppard Mullin. Representatives for James and Elisabeth Murdoch declined to comment.
