In a significant legal ruling, Rupert Murdoch's efforts to seize control over his media empire through a family trust modification have been thwarted. A Nevada court commissioner dismissed the billionaire's attempts to allow his eldest son, Lachlan Murdoch, to take charge of controlling News Corp and Fox News when Rupert passes away. This decision sets the stage for ongoing family tensions as Rupert, now 93, finds himself at odds with three of his children: Prudence, Elisabeth, and James.
According to sources, Rupert Murdoch aimed to amend a family trust established in 1999, seeking to empower Lachlan while sidestepping potential conflicts with his siblings. However, the commissioner ruled that both Rupert and Lachlan acted in "bad faith," labeling their intentions as a "carefully crafted charade," per reports from the New York Times.
The siblings expressed relief over the court's decision, with a spokesperson stating, "We welcome Commissioner Gorman's decision and hope that we can move beyond this litigation to focus on strengthening and rebuilding relationships among all family members." Meanwhile, Adam Streisand, an attorney representing Rupert, has voiced disappointment over the ruling, indicating plans to appeal.
The Murdoch family's dynamic has often drawn comparisons to the HBO series "Succession," which showcases the trials of a media dynasty under duress. The timing of this court case coincided with the family's discussions about succession following a particular episode that stirred anxiety regarding their father's future and the subsequent handling of their business. Reports indicate that Elisabeth's representatives even drafted a "'Succession' memo" aimed at averting a real-life outcome resonating with the show's premise.
Beyond Lachlan, Rupert is also a father to two younger daughters, Grace and Chloe, who lack voting rights in the trust agreement. The conflict ignited when Rupert expressed concern over a "lack of consensus" among his children. Historically, Lachlan has held more conservative views compared to his siblings, suggesting he would aim to maintain their media legacy.
Starting in the 1960s, Rupert Murdoch has expanded his media footprint into a substantial global powerhouse, commanding significant political influence. His primary business holdings include News Corporation, which boasts publications such as The Times and The Sun, and Fox, which operates the notorious Fox News network.
Murdoch has long groomed his children for leadership roles, reinforcing the idea of a family dynasty through his work. The family's trust arrangement was designed to streamline succession plans and allocate influence among the children, with a total of eight voting rights shared among them. Presently, Rupert maintains control over four votes, while his eldest offspring possess one vote each.
The ongoing fallout from recent trust modifications has ignited palpable familial discord. It is essential to note, however, that while the commissioner's ruling provides guidance, it does not serve as a final verdict; a district judge is still poised to take up the case and may arrive at a different conclusion, according to the Times.
