Who will control Rupert Murdoch's media empire? Why will the court ...

Media Mogul Rupert Murdoch (C) poses for a photograph with his sons Lachlan (L) and James as they arrive at St Bride's church for a service to celebrate the wedding between Murdoch and former supermodel Jerry Hall which took place on in London, UK, March 5, 2016. File Image/Reuters

The future of Rupert Murdoch’s multi-billion-dollar media empire has become the focus of a high-stakes legal battle, pitting members of his own family against one another in a court case that could rival any drama.

With a vast portfolio of influential newspapers and television channels at stake, as well as billions in assets, thousands of jobs, and major influence over the global media landscape, this case holds the power to reshape Murdoch’s legacy and the ideological direction of his companies.

The 93-year-old media mogul’s health and age have brought the issue of succession to the forefront, and tensions within the Murdoch family have surfaced over who will gain control of his empire, which includes iconic outlets like Fox News and The Wall Street Journal.

Rupert Murdoch arrives at the court for the hearing on the contentious matter of succession of Murdoch’s global television and publishing empire, in Reno, Nevada, US, September 16, 2024, in this still image obtained from a video. Reuters

The battle revolves around the Murdoch Family Trust, a $14.9 billion structure set up in 1999, and Rupert’s desire to alter its terms to ensure one of his sons, Lachlan Murdoch, assumes full control over News Corp and Fox Corp after his death, a move fiercely opposed by some of his other children.

What does Rupert Murdoch’s successor inherit?

Rupert Murdoch’s media empire is a sprawling, globe-spanning conglomerate, encompassing some of the most powerful media brands.

News Corp, one of Murdoch’s two main companies, owns prestigious publications such as The Wall Street Journal and The New York Post in the US, The Times and The Sun in the UK, and major Australian newspapers such as The Herald Sun and The Australian. News Corp also controls the publishing powerhouse HarperCollins and several Australian television networks.

Fox Corp, the other arm of the empire, includes the conservative juggernaut Fox News, Fox Sports, and the streaming platform Tubi.

Lachlan Murdoch, son of Rupert Murdoch, arrives at the court for the hearing on the contentious matter of succession of Rupert Murdoch’s global television and publishing empire, in Reno, Nevada, US, September 16, 2024, in this still image obtained from a video. Reuters

With a roughly 40 per cent stake in voting shares of both companies, Murdoch has long exercised editorial control, notably using Fox News to champion right-wing political narratives, particularly in the United States.

The current struggle concerns who will inherit control of these powerful media entities, as the Murdoch Family Trust was originally set up to give equal voting shares to Rupert’s four eldest children: Prudence, Elisabeth, Lachlan, and James.

However, recent court filings reveal Rupert Murdoch’s desire to change these arrangements, granting Lachlan greater control over the family’s vast empire.

What is the rift in the family?

While Rupert Murdoch’s media empire has leaned heavily toward conservative politics — especially through Fox News — his children are not united in their political views. Lachlan, his eldest son, is seen as the heir most aligned with Rupert’s right-wing ideology.

Lachlan currently serves as CEO of Fox Corp and chair of News Corp, roles in which he has championed his father’s conservative vision.

In stark contrast, Lachlan’s siblings — James, Elisabeth, and Prudence — are considered more moderate. James, who resigned from the News Corp board in 2020, has been particularly vocal in his opposition to Fox News and its editorial stance.

Prudence Murdoch, daughter of Rupert Murdoch, arrives at the court for the hearing on the contentious matter of succession of Rupert Murdoch’s global television and publishing empire, in Reno, Nevada, US, September 16, 2024, in this still image obtained from a video. Reuters

He has criticised the company’s role in spreading misinformation, particularly in the aftermath of the 2020 US Presidential election, when Fox News aired unsubstantiated claims of election fraud. “James has endorsed Kamala Harris for President,” noted _The Wall Street Journa_l, highlighting the political divide within the family.

James and his wife, Kathryn, have publicly expressed dismay over the Murdoch media empire’s climate change denial, particularly through its Australian outlets. They have even condemned the media’s role in contributing to the January 6 Capitol insurrection, with James lamenting the spread of “lies” that led to the event, though he stopped short of naming Fox News directly.

Elisabeth has privately shared her discomfort with being associated with Fox News. Prudence, the eldest, has generally remained more neutral, though she too is reportedly uneasy about the direction of the empire.

Elisabeth Murdoch, daughter of Rupert Murdoch, arrives at the court for the hearing on the contentious matter of succession of Rupert Murdoch’s global television and publishing empire, in Reno, Nevada, US, September 16, 2024, in this still image obtained from a video. Reuters

These ideological differences have raised the stakes in the court case, as Rupert Murdoch seeks to protect the conservative legacy of his empire by concentrating power in Lachlan’s hands.

“The lack of consensus among my children would impact the strategic direction of both companies,” Murdoch is reported to have said, according to court documents. This concern prompted him to seek an amendment to the trust, giving Lachlan “permanent, exclusive control.”

What do we know about the court case?

The case is being heard in private behind closed doors at the Washoe County Courthouse in Reno, Nevada, a decision that has sparked controversy. Major US-based media organisations, including The Associated Press, The New York Times, and CNN, filed petitions to make the proceedings public, arguing that the fate of such a vast and influential media empire is of significant public interest.

However, the court rejected these pleas, with the judge ruling that the family trust, though linked to publicly traded companies, is a “private legal arrangement” and therefore exempt from public scrutiny.

The ruling did little to quell interest in the case, which could potentially reshape the global media landscape.

At the heart of the dispute is whether Rupert Murdoch can legally amend the trust, which was set up in 1999 during his divorce from his second wife, Anna Murdoch Mann, and was originally designed to be irrevocable. According to Nevada law, Murdoch can change the terms if he can prove that it would benefit all of his heirs.

In a ruling earlier this year, Nevada probate commissioner Edmund Gorman stated that Murdoch could proceed with changes if he demonstrated that his actions were in good faith and for the benefit of the family. The billionaire is expected to argue that Lachlan’s leadership would ensure stability in the companies and prevent a power struggle that could lead to disunity or even a sale of the assets.

What’s at stake?

If Rupert Murdoch succeeds in altering the trust, Lachlan will continue to hold the reins of the media empire, securing his position as executive chair of News Corp and Fox Corp. This would likely preserve the conservative editorial stance of Fox News and other outlets under Murdoch’s control.

“Lachlan’s politics are far more conservative than his father’s,” said Hollywood Reporter, implying that Fox News could maintain or even expand its right-wing approach under his leadership.

However, if James, Elisabeth, and Prudence win the case, they could push the companies in a more moderate direction. They might use their voting power to challenge the political slant of Fox News and other properties, or even sell their stakes in the trust.

James Murdoch, son of Rupert Murdoch, arrives at the court for the hearing on the contentious matter of succession of Rupert Murdoch’s global television and publishing empire, in Reno, Nevada, US, September 16, 2024, in this still image obtained from a video. Reuters

A sale of Fox News, once unthinkable, is now a distinct possibility, as James has reportedly signaled interest in distancing the family from the network’s controversial reputation.

There have also been discussions of a buyout, where Rupert and Lachlan could purchase the shares held by the other siblings. Such negotiations have stalled in the past, likely due to the enormous financial sums involved, but they could be revived depending on the outcome of the court case.

The Murdoch family:

Prudence, Rupert Murdoch’s eldest child, is from his first marriage to Patricia Booker.

His second marriage to Anna Mann, from 1967 to 1999, produced three more children: Elisabeth, Lachlan, and James.

Grace and Chloe are daughters from his third marriage to Wendi Deng, which lasted from 1999 to 2013.

In 2016, Murdoch married model Jerry Hall, but they divorced in 2022.

Murdoch was engaged to former American radio host Ann Lesley Smith for two weeks in 2023.

Recently, in June this year, Murdoch tied the knot with his fifth wife, Elena Zhukova. Murdoch also has a stepdaughter Dasha Zhukova.

Murdoch has six children biologically and is grandfather to thirteen grandchildren.

The Murdoch family has long been rumoured to be one of the key inspirations behind the hit HBO TV series Succession. Despite widespread speculation, the Murdochs have consistently declined to comment on any parallels between their real-life media empire and the fictional drama.

With inputs from agencies

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