Murdoch’s Final Move Secures Conservative Legacy of Media Empire amid Family Split

In a stunning turn of events, media mogul Rupert Murdoch has orchestrated a strategic move that ensures his corporate empire, encompassing Fox News, The Wall Street Journal, and New York Post, among others, will maintain its distinctive conservative identity posthumously.

Through a series of intricate negotiations, Murdoch and his son Lachlan have reached an agreement to acquire the shares held by Lachlan’s three elder siblings: Prudence, Elisabeth, and James. With this transaction, Lachlan is poised to assume control over both Fox Corp. and News Corp. upon Murdoch’s demise.

In recent years, James has emerged as a vocal critic of the direction of Fox News and other Murdoch-owned news outlets, including The Journal and News Corp.’s Australian papers. His criticism focused on coverage of the January 2021 U.S. Capitol siege, Fox’s support for President Trump, and the frequent denial of climate change on Fox and in the company’s Australian publications.

Elisabeth and Prudence also felt betrayed by Murdoch and Lachlan’s surprise legal action against them and James in a Reno, Nevada probate court to disassociate them from any influence over the company’s future.

The original family trust will be dissolved, as per this settlement. A new trust will be established, with Lachlan holding sole control. Murdoch’s two youngest daughters, Grace and Chloe, from his third marriage to Wendi Deng, will share the financial benefits but have no decision-making power. The divorce occurred in 2013.

To finance these payments, the Murdoch companies are selling shares worth over $1.4 billion. This move has diluted the percentage of voting shares held by the new family trust, reducing it from approximately 40% to around one-third in both Fox Corp. and News Corp.

Neither News Corp., Fox Corp., Lachlan, nor Rupert Murdoch commented on the pending transaction. A spokesperson for James declined comment, and representatives of the other siblings could not be reached.

The settlement has been a long time in the making, as James and Lachlan have historically vied for corporate control. There were concerns about Lachlan’s ability to lead the family companies into the future, following Murdoch’s passing, without his father’s singular drive.

Murdoch opted for Lachlan, who shares his conservative ideology; some even argue that Lachlan is more ideological than his father. Both men believe that, after Murdoch’s death, the company will require stability in leadership and consistency in its core principles to preserve audience loyalty.

Under Lachlan and Murdoch’s leadership, The Wall Street Journal has become a financial powerhouse, while Fox has performed strongly. However, Fox’s reports and commentary have sparked numerous scandals in recent years, with the latest involving a defamation lawsuit from election software company Smartmatic. Fox maintains it was simply reporting newsworthy allegations.

The original family trust granted the four children from Murdoch’s first and second marriages equal financial stakes and voting power in determining their companies’ future. This condition was set by Murdoch’s second wife, Anna, during their divorce, allowing him to avoid dividing half his net worth with her (he instead paid her $110 million).

The trust was irrevocable. However, Murdoch sought to have it revoked, effectively erasing its purpose. A Nevada state probate official ruled that Murdoch and Lachlan had acted in bad faith, and their appeal prospects looked bleak.

Throughout his career, Murdoch has demonstrated a reputation for ruthlessness. In dire situations, however, Murdoch has also shown a propensity for making substantial settlements. For example, he gave his four eldest children an additional $100 million when he decided to grant Grace and Chloe equal financial stakes.

Murdoch’s British papers paid out over $1.5 billion to settle claims from 1,300 litigants who alleged phone hacking or other invasions of privacy. Now, Murdoch has achieved a truce by purchasing out three of his children from the family business. However, this peace remains fragile, as James and Murdoch seldom communicate.