Agencies
A closed-door court battle over control of the media empire of mogul Rupert Murdoch is set to commence on Sept. 16 and could determine the future of Fox News and the Wall Street Journal (WSJ).
Murdoch, 93, is attempting to change the terms of the family’s irrevocable trust to ensure his newspapers and television networks remain under the control of his eldest son and chosen heir, Lachlan Murdoch, according to the New York Times, which obtained a sealed court document detailing the succession drama.
Reuters and other news organizations are attempting to gain access to sealed court records and to open the court hearings in Reno, Nevada, before probate commissioner Edmund J. Gorman Jr.
The trust lays out a scenario on how a potential takeover could occur, according to a source who has seen the documents.
The trust is the vehicle through which the elder Murdoch controls News Corp and Fox, with roughly a 40% stake in voting shares of each company.
Murdoch also holds a small amount of shares of the companies outside the trust.
Upon Rupert Murdoch’s death, News Corp and Fox voting shares will be transferred to his four oldest children – Prudence, Elisabeth, Lachlan and James.
Potentially, three of the heirs could out-vote a fourth, setting up a battle over the future of the companies, even as Lachlan Murdoch runs Fox and is the sole chair of News Corp.
Rupert Murdoch’s proposed amendment to the trust would block any interference by three of Lachlan’s siblings, who are more politically moderate, the Times reported, citing a sealed court document.
Lachlan Murdoch is viewed as ideologically aligned with his conservative father. James Murdoch, who has donated to progressive political groups, resigned in 2020 from the News Corp board, citing disagreements over editorial content.
James also has criticized the U.S. media for amplifying disinformation about the 2020 election results ahead of the Jan. 6 attack on the Capitol. He hosted a fundraiser for U.S. President Joe Biden in 2021 before the Democrat ended his reelection campaign.
