The eldest son of Rupert Murdoch, Lachlan Murdoch, has finalized a deal to solidify his control over the family’s media empire, which encompasses Fox News and the Wall Street Journal. This agreement, revealed on Monday, resolves a family dispute over leadership succession within the prominent global media group following the passing of the family patriarch.
The development, reminiscent of the HBO series “Succession,” depicts the internal conflicts within a media dynasty. The resolution upholds the conservative orientation of Murdoch’s media platforms. As part of the deal, Rupert’s children James Murdoch, Elisabeth Murdoch, and Prudence MacLeod will receive undisclosed cash proceeds from the sale of approximately 16.9 million shares of Fox Class B voting stock and about 14.2 million shares of News Corp’s Class B common stock.
Reportedly, each child is anticipated to receive around $1.1 billion US from the transaction. The children have agreed to divest their personal stakes in Fox and News Corp gradually over six months. Additionally, a new family trust will be established to benefit Lachlan Murdoch and his younger sisters, Grace and Chloe Murdoch, from Rupert’s marriage to Wendi Deng Murdoch. This trust, valued at roughly $3.3 billion US, will hold substantial percentages of Fox’s Class B common stock and News Corp’s Class B shares.
The legal battle over Rupert’s media empire unfolded in a Reno, Nev., courtroom last year, involving a judge’s deliberations on the contentious succession matter. Following Rupert’s attempt to alter the terms of the family trust established after his divorce in 1999, concerns arose about potential power struggles among his heirs.
Concerned that his other children might attempt to remove Lachlan from leadership positions, Rupert sought to amend the trust to prevent such interference. However, a Reno probate court rejected this proposal, leading to settlement discussions and eventually culminating in the recent agreement. Fox News, a prominent U.S. cable news network with significant influence in American politics, particularly among conservative audiences, remains a vital asset within the Murdoch media portfolio.
Industry experts, like Claire Enders of Enders Analysis, view the resolution positively, ensuring a conservative stewardship of Fox News. The deal is perceived as a strategic move that safeguards the network’s ideological stance.
