Rupert Murdoch fails in bid to change family trust
Rupert Murdoch has failed in his bid to change an irrevocable family trust, a Nevada probate commissioner ruled on Saturday (US time).
The 96-page sealed ruling, obtained by The New York Times, said Murdoch’s attempts to alter the trust, which holds the voting power for both News Corp and Fox News-owner Fox Corp, were done in “bad faith”.
Rupert Murdoch, pictured in October, wants eldest son Lachlan to get full voting power over the family trust.Credit: GC Images
The move was an attempt by the 93-year-old to cement his eldest son Lachlan’s control of the family empire after his death and secure their media assets’ conservative positioning. Rupert Murdoch arrived in Sydney last week and attended Lachlan’s Christmas party on Thursday.
The trust currently would divide control of the company equally among Rupert Murdoch’s four oldest children – Lachlan, James, Elisabeth and Prudence – after his death. Without change, Lachlan’s siblings could effectively remove him from his position of control.
Murdoch’s attempts were only to alter the voting power, rather than the financial share each sibling will receive. His youngest children (from his third marriage), Chloe and Grace, have a financial stake in the trust, however they do not have any voting power.
In his opinion, the commissioner, Edmund J. Gorman Jr, said the plan to change the trust was a “carefully crafted charade” to “permanently cement Lachlan Murdoch’s executive roles” inside the empire “regardless of the impacts such control would have over the companies or the beneficiaries” of the family trust, the Times said.
Lachlan Murdoch and wife Sarah on a yacht in Sydney Harbour last Friday.Credit: Louie Douvis
A lawyer for Rupert Murdoch, Adam Streisand, said they were disappointed with the ruling and intended to appeal, the Times reported.
In a statement provided to the Times, James, Elisabeth and Prudence said: “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.”
The high-stakes battle is set to determine the fate of one of the world’s most influential conservative media businesses and potentially shift the direction of an expansive media network that includes Fox News, The Wall Street Journal and The Australian.
If Rupert Murdoch’s appeal fails, it could mean that James Murdoch – who previously held fundraisers for President Joe Biden and was one of 88 corporate leaders to endorse Kamala Harris recently – will potentially be able to work with Prudence and Elisabeth to take the business in a more moderate direction. Elizabeth, a media executive in her own right, is also known to hold more moderate political views.
Murdoch Sr argued that by conserving the right-wing positioning of the media assets, it would preserve their commercial power, and as a result help all beneficiaries of the trust.
Lachlan Murdoch is currently News Corp’s chairman and the executive chairman and chief executive of Fox Corporation, following his father’s decision to stand down last year.
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The hearing in Reno, Nevada, which began in September, was highly secretive, with no media in the courtroom. However, the new sealed document offers an insight into some of the testimony heard.
The court heard the siblings started to discuss a public relations strategy for their father’s death in April 2023, prompted by an episode of the HBO show Succession – thought to be inspired by the Murdoch dynasty – where family patriarch Logan Roy abruptly dies, “leaving his family and business in chaos”.
With Reuters
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