A Nevada court has ruled against Rupert Murdoch’s attempt to amend his family trust to consolidate control of his media empire under his son Lachlan Murdoch. The decision ensures all four of Murdoch’s eldest children retain equal control of the trust after his death.
Court Rules Against Murdoch
Nevada Commissioner Edmund Gorman determined Rupert and Lachlan Murdoch acted in “bad faith” in their bid to change the irrevocable trust. The court described the plan as a “carefully crafted charade” designed to “permanently cement Lachlan Murdoch’s executive roles” within the empire.
The trust, as it stands, divides control equally among Rupert’s four eldest children—Lachlan, James, Elisabeth, and Prudence. Rupert had reportedly sought the amendment to ensure his media companies maintain a politically conservative direction after his death.
The Murdoch Empire
Rupert Murdoch’s media holdings span influential brands across multiple countries. They include News Corp assets like The Australian, The Wall Street Journal, and Sky News Australia, as well as Fox Corporation assets like Fox News and Fox Sports in the US.
Lachlan Murdoch, CEO and executive chair of Fox Corporation and sole chair of News Corp, is closely aligned with his father’s conservative views. His siblings, however, are reportedly less aligned, with James Murdoch publicly opposing some of the empire’s political stances.
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Private Legal Proceedings
The court battle, referred to as “Project Harmony” by Rupert and Lachlan, unfolded behind closed doors in Reno, Nevada, in September. Privacy provisions ensured limited public access to the hearing, which required all four children to attend.
The legal documents revealed the plan blindsided Rupert’s other children. Commissioner Gorman found the proposal prioritised Lachlan’s leadership roles “regardless of the impacts such control would have over the companies or the beneficiaries” of the trust.
Reactions from the Murdoch Family
James, Elisabeth, and Prudence welcomed the court’s ruling. A spokesperson for the siblings 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.”
Rupert Murdoch’s lawyer, Adam Streisand, expressed disappointment with the decision. He stated that both Rupert and Lachlan intended to appeal.
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Parallels with Succession
The court case gained additional attention for its parallels to the hit TV drama Succession. The ruling revealed that Rupert’s children discussed a public relations strategy for his death in April last year, inspired by an episode of the show.
This prompted Elisabeth’s representative on the trust to draft a “Succession memo” aimed at avoiding the kind of chaos depicted in the series following the death of its fictional patriarch.
Potential Impacts on the Empire
The court ruling has significant implications for the Murdoch empire’s future direction. Lachlan has championed the company’s conservative approach, which aligned with Donald Trump’s political rise. This strategy has boosted viewership and revenue, with Fox Corporation reporting nearly $14 billion in revenue for the 2024 fiscal year.
In contrast, James Murdoch has taken public stances against the empire’s political direction. He resigned from News Corp in 2020, criticising climate change denialism and misinformation in Murdoch-owned media.
The ruling could lead to a shift in the empire’s ideological focus. However, some experts believe the family’s shared financial interests may preserve the status quo.
Expert Views on the Ruling
Robert Thompson, a media scholar, commented on the potential outcomes. “This is such a successful business model that anything jeopardising it would be bad for everybody,” he said.
Thompson noted that while the court ruling protects shared control among the siblings, financial incentives might prevent drastic changes. “The Fox model has worked very well,” he added.
Next Steps
While the commissioner’s decision is significant, it still requires approval from a probate court district judge. Rupert Murdoch and Lachlan’s appeal could prolong the family dispute for months.
The case also highlighted the intense legal resources involved. Rupert worked with high-profile lawyers, including Adam Streisand, known for representing celebrity estates, and former US attorney general William Barr.
If the ruling holds, it will ensure the trust structure remains unchanged. All four siblings will retain equal voting power over the empire, although Lachlan will continue in his current leadership roles.
Conclusion
Rupert Murdoch’s attempt to secure his media empire’s ideological legacy through Lachlan has faced a major legal setback. The ruling underscores the challenges of succession planning in one of the world’s most powerful media dynasties. For now, the Murdoch empire remains under shared control, with its future direction uncertain.