The Murdoch family has come to an agreement that will solidify Lachlan Murdoch’s control over the family’s media empire, which includes Fox News and the Wall Street Journal. This deal, revealed on Monday, resolves a family feud over leadership of the prominent global media conglomerate and addresses concerns about succession within the Murdoch family following the passing of its patriarch.
The development, reminiscent of the power struggles depicted in the HBO series “Succession,” secures the conservative orientation of Murdoch’s media properties. As part of the arrangement, Rupert’s offspring James Murdoch, Elisabeth Murdoch, and Prudence MacLeod will receive funds 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. The specific amount of the transaction remains undisclosed, but sources suggest each child stands to gain around $1.1 billion US from the proceeds.
The children have agreed to divest their personal stakes in Fox and News Corp gradually over a six-month period. Furthermore, a new 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 approximately $3.3 billion US, will hold 36% of Fox’s Class B common stock and 33% of News Corp’s Class B shares.
Last autumn, a legal battle unfolded in a Reno, Nevada courtroom concerning the fate of Rupert’s global television and publishing empire. The 94-year-old media mogul sought to alter the terms of the family trust established after his 1999 divorce from his second wife, Anna, which holds significant interests in Fox News parent Fox Corp and News Corp, owner of the Wall Street Journal.
Initially, the trust dictated that News Corp and Fox voting shares would transfer to Murdoch’s four eldest children upon his demise. Concerned about a potential power struggle among his heirs, especially from his more politically moderate children James, Elisabeth, and Prudence, Rupert proposed changes to the trust to safeguard Lachlan’s leadership roles at Fox and News Corp. However, a probate court in Reno dismissed this amendment, alleging bad faith on the part of Rupert and Lachlan.
Fox News retains its position as the top U.S. cable news network, exerting significant influence in American politics, particularly within the conservative audience. Industry experts view the resolution favorably, ensuring a conservative stewardship of Fox News. Claire Enders, CEO of the media research firm Enders Analysis, commended the move as beneficial for shareholders.
U.S. President Donald Trump has taken legal action against the Wall Street Journal over a report linking him to convicted sex offender Jeffrey Epstein and has instructed the Department of Justice to disclose relevant grand jury testimony in the Epstein case.