Shades of Succession as US court blocks Rupert Murdoch’s bid to alter family trust to keep conservative flame burning

Published 10/12/2024, 02:56 pm
Updated 10/12/2024, 03:30 pm
© Reuters.  Shades of Succession as US court blocks Rupert Murdoch’s bid to alter family trust to keep conservative flame burning
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The more progressive wing of the Murdoch family is celebrating a victory, for now, after a Nevada court denied Rupert Murdoch’s attempt to amend his family trust, according to reports by The New York Times (NYSE:NYT).

The aim was to consolidate control of his media empire under his son Lachlan Murdoch, whose political views – regularly showcased on Fox News and other networks under the family’s control – most closely align with the patriarch’s own.

The ruling, issued by Commissioner Edmund Gorman, found Rupert and Lachlan acted in "bad faith" in their effort to modify the irrevocable trust.

Succession comparison

According to court documents, discussions about Rupert’s legacy were prompted by comparisons to Succession, the TV series about a feuding media family.

A 'Succession memo' was reportedly drafted by the powers that be to avoid similar chaos to that depicted by the show in the event of Rupert Murdoch's passing.

The changes would have ensured Lachlan’s continued leadership of the empire, overriding the trust's current structure, which divides control equally among Rupert’s four eldest children: Lachlan, James, Elisabeth and Prudence.

The court documents, sealed but cited by The New York Times, described the plan as a "carefully crafted charade" designed to cement Lachlan’s executive roles "regardless of the impacts" on the family trust’s beneficiaries or the companies involved.

Lachlan Murdoch currently serves as CEO and executive chair of Fox Corporation and as sole chair of News Corporation.

Conservative political views

He is aligned with his father’s conservative political views, unlike his siblings – notably James – who have been avowedly less supportive of the tycoon’s views on climate and social issues.

Rupert Murdoch is believed to have sought the restructure to ensure his media companies maintain their politically conservative direction posthumously.

The Murdoch media stable includes assets such as The Australian, The Wall Street Journal, Fox News and Sky News Australia, as well as entertainment ventures like Foxtel and Fox Sports.

The court case, held privately in September in Reno, Nevada, laid bare the long-brewing tensions within the Murdoch family.

Representatives for James, Elisabeth and Prudence welcomed the decision, saying the three hoped for reconciliation within the family.

Meanwhile, Rupert Murdoch and Lachlan intend to appeal the ruling.

Read more on Proactive Investors AU

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