Court rejects Rupert Murdoch’s attempt to hand media empire to eldest son Lachlan

In a real-life "Succession"-style drama, a Nevada court has rejected Rupert Murdoch's bid to amend a family trust that would have granted his eldest son, Lachlan Murdoch, control of his vast media empire.

The ruling comes after a tense legal battle between the 93-year-old billionaire and three of his children over who would lead News Corp and Fox News when he passes. The case, which has played out behind closed doors, saw a Nevada court commissioner deny Mr. Murdoch's request, stating that both he and his son had acted in “bad faith” and calling the proposed changes a “carefully crafted charade”.

The Murdoch Family Trust and Its control

At the heart of the dispute is a 1999 family trust established to settle succession plans for Murdoch’s media conglomerate. The trust, which governs the future control of News Corp and Fox News, includes a structure that gives the Murdoch children significant voting power. However, the trust also allows for conflicts among the family members, especially given their differences in political views and approach to the media empire's future.

The trust initially gave Rupert Murdoch's eldest children, including Prudence, Elisabeth, Lachlan, and James, voting rights in the company’s governance. However, the 1999 agreement stated that Murdoch's votes would be distributed equally among the four eldest children once he died, a point that has been contested in recent years.

Lachlan Murdoch’s ascendancy

Reports suggest that Rupert Murdoch sought to alter the trust to allow Lachlan Murdoch to gain full control without interference from his siblings, who are said to have differing views on how to steer the future of the family business. Lachlan has long been seen as the heir apparent in the media empire, particularly due to his more conservative stance compared to his siblings. However, the bid to bypass his siblings in the family trust has led to an intense legal battle.

Reactions from the family

Following the ruling, Prudence, Elisabeth, and James Murdoch issued a joint statement welcoming the decision. Their representative 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."

Meanwhile, Adam Streisand, a lawyer for Rupert Murdoch, expressed disappointment with the court's ruling and confirmed plans to appeal. The decision has yet to be final, as the case will still be reviewed by a district judge, who could choose to rule differently in the coming weeks or months. A final decision is expected to remain private due to the confidential nature of the case.

The ‘Succession’ connection

The legal drama surrounding the Murdoch family has drawn comparisons to the hit HBO series, Succession, which was inspired by the family's real-life power struggles. According to reports, the Murdoch children began discussing how to handle their father’s death after watching an episode of the series in which a patriarch's death leads to chaos within his family and business. This sparked discussions about the family’s future and prompted Elisabeth Murdoch’s representative to write a “Succession memo” in an attempt to avoid a similar outcome in reality.

The family has consistently declined to comment on its alleged connection to the show, though reports indicate the legal conflict mirrors some of the themes depicted in the series, including familial rivalry, power struggles, and the battle for control of a vast media empire.

A Family divided

While the battle has been about power and control rather than financial gain, it underscores the deepening divide within the Murdoch family. The Murdoch Family Trust, which has governed the empire since 1999, was intended to provide a clear path for succession. However, the trust has been unable to prevent family infighting, with each member having different visions for the future of the company.

Additionally, Mr. Murdoch has two younger children, Grace and Chloe, who are not part of the trust agreement and have no voting rights in the future of the empire. As tensions mount within the family, the question of who will control the Murdoch media empire once Rupert Murdoch is gone remains unresolved.

Future of the Murdoch Media Empire

Rupert Murdoch’s legacy as a media mogul is firmly entrenched. Since the 1960s, Murdoch built a global media giant with immense political influence, leading to the creation of two major companies: News Corporation, which owns newspapers such as The Times and The Sun, and Fox, which operates Fox News.

The trust had been designed to maintain continuity after Mr. Murdoch's death, with his two sons, Lachlan and James, groomed to take over the empire. However, the ongoing legal challenges reflect the difficulty in reconciling personal differences within one of the world's most powerful media families.

As the case heads toward an appeal, the battle for the future of the Murdoch empire continues, with both sides preparing for what could be a prolonged legal and familial struggle.