Murdoch succession drama plays out in closed court
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Media mogul Rupert Murdoch (centre) with his sons Lachlan (left) and James.
PHOTO: REUTERS
LOS ANGELES - A battle over control of media magnate Rupert Murdoch’s global television and publishing empire begins Sept 16 in a Reno, Nevada courtroom, where a judge will consider the contentious matter of succession.
Mr Murdoch, 93, is attempting to change the terms of the family’s trust which holds significant stakes in Fox News parent Fox and Wall Street Journal owner News Corp.
The billionaire is looking to ensure that, upon his death, the media companies remain under the control of his eldest son Lachlan Murdoch, according to the New York Times, which obtained a sealed court document detailing the succession drama.
A hearing to determine whether Mr Murdoch is acting in good faith will take place in probate court, where the proceedings are closed to the public.
A Nevada judge on Sept 12 rejected an appeal by Reuters and other news organisations to open the hearings to the public.
The news organisations had said the fate of such culturally and politically influential media outlets was a matter of public interest, but the judge cited the need to prevent disclosure of confidential personal and financial information. Most documents also remain under seal.
The Murdoch trust was formed around the time of Mr Murdoch’s divorce from his second wife Anna in 1999. The trust is the vehicle through which his eldest son controls News Corp and Fox, with roughly a 40 per cent stake in voting shares of each company.
Upon Mr 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 Mr Lachlan Murdoch runs Fox and is sole chair of News Corp.
Mr Murdoch’s proposed amendment would block any interference by three of Lachlan’s siblings, who are more politically moderate, the Times reported, citing a sealed court document.
Mr Lachlan Murdoch is viewed as ideologically aligned with his conservative father. Mr James Murdoch, who has donated to progressive political groups, resigned in 2020 from the News Corp board, citing disagreements over editorial content. REUTERS
