Murdoch Siblings Reach Settlement Over Media Empire Control

Rupert Murdoch’s children have settled a contentious legal dispute regarding the control of their father’s media empire, which includes News Corp and Fox Corp. The settlement marks a significant resolution to a conflict that had pitted the 94-year-old media mogul against three of his children—Prudence, Elisabeth, and James Murdoch—over succession plans following his eventual passing.

The legal battle was sparked by Murdoch’s intention to amend a family trust established in 1999. He sought to name his eldest son, Lachlan Murdoch, as his successor and eliminate any potential interference from his siblings. Lachlan, who shares his father’s political views, has been managing Fox Corp for several years. However, a Nevada court intervened last year, ruling that both Rupert and Lachlan had acted in bad faith in their efforts to alter the trust.

Details of the Settlement

Under the new agreement, a trust will replace the existing Murdoch Family Trust, which previously included all siblings and half-siblings. As part of the settlement, Prudence MacLeod, Elisabeth Murdoch, and James Murdoch will receive cash from equity sales and will relinquish their holdings in both media companies. According to the Financial Times, each sibling will receive $1.1 billion to forgo any claims to control over Fox Corp, which is currently valued at $3.3 billion.

The agreement outlines that new trusts will be established for the benefit of Lachlan Murdoch and his children, Grace and Chloe. A press release indicated that Rupert and his two half-sisters would be identified as “remaining beneficiary trusts.” The settlement stipulates that the departing beneficiaries will no longer have any claims to trusts holding shares in News Corp or Fox Corporation.

The legal turmoil reportedly began when the Murdoch children watched an episode of the HBO series Succession, which portrays a patriarch leaving chaos behind after his death. Following the episode, Elisabeth’s representative drafted a “Succession memo” aimed at preventing similar family and business disarray in real life, according to the New York Times.

This resolution not only brings closure to a potential family feud but also ensures that Lachlan Murdoch retains control over the global media empire that has been a cornerstone of the Murdoch family for decades. The settlement reflects the complexities of managing family dynamics within high-stakes business environments.