Lachlan Murdoch gains control of family empire as succession tussle with siblings resolved
Lachlan Murdoch has secured control of the family empire built by his father, Rupert Murdoch, after a bitter succession battle ended with his three older siblings agreeing to a settlement.
The resolution of the legal battle, which spilled into public view last year, gives Lachlan Murdoch control over Fox Corp and News Corp, while the elder siblings will receive around US$1.1bn each, according to reports.
Under the agreement, which the family described as a “mutual resolution,” Prudence MacLeod, Elisabeth Murdoch and James Murdoch will receive funds from the public sale of around 16.9 million shares of Fox Class B common stock and 14.2 million shares of News Corporation Class B common stock.
All litigation has been ended as a result of the agreement, with the sibling trio ceasing to be beneficiaries in any trusts holding shares in either Fox Corp or News Corp.
Once the transaction is complete, a new holding company owned by Lachlan Murdoch, Grace Murdoch and Chloe Murdoch will hold all the remaining shares in Fox Corp and News Corp. The holding company is expected to hold around 36% of Fox Corp’s Class B common stock and 33% of News Corp’s Class B common stock. Grace Murdoch and Chloe Murdoch are children from Rupert Murdoch’s third marriage, to Wendi Deng.
The settlement brings a close to the saga of who will control the Murdoch empire when Rupert Murdoch, now 94, dies. With this latest development, Rupert Murdoch will continue in his role as chairman emeritus at both Fox Corp and News Corp.
Prudence MacLeod, Elisabeth Murdoch and James Murdoch took legal action last year after their father tried to place voting power solely in the hands of Lachlan Murdoch. That move contradicted the initial trust agreement, that would have meant the four eldest children would have split voting shares in Fox Corp and News Corp upon Rupert Murdoch’s death. Court records indicated Rupert Murdoch did not want to cause a family rift but felt Lachlan Murdoch was the best successor to his empire.
Lachlan Murdoch is widely considered to be the most politically conservative of the children, which his father has viewed as an asset. According to a report from the New York Times last year, Rupert Murdoch said his media properties were a “protector of the conservative voice in the English-speaking world” and that Lachlan Murdoch was best equipped to preserve them.
In particular, James Murdoch has disagreed with the conservative politics of his father and those espoused by his media assets. Earlier in the year, James Murdoch told The Atlantic that Fox News was a “menace” to American democracy.
With the legal case resolved, Lachlan now has the keys to both Fox Corp and News Corp. Fox Corp is the owner of assets including Fox News, the Fox broadcast network, Fox stations, AVoD platform Tubi and newly launched streamer Fox One. Meanwhile, News Corp owns a portfolio of publications including the Wall Street Journal, the New York Post, the Times and The Sun, as well as book publisher HarperCollins and financial services such as Dow Jones and MarketWatch.
“Fox’s board of directors welcomes these developments and believes that the leadership, vision and management by the company’s chair, Lachlan Murdoch, will continue to be important to guiding the company’s strategy and success,” said Fox Corp in a statement. Separately, News Corp published the same statement.
