The Murdoch Family Feud: How Rupert Murdoch’s Secret Court Battle Could Shape the Future of Fox News and Wall Street Journal
By Dawn Chmielewski
RENO, Nevada (Multibagger) - In a high-stakes, closed-door court battle beginning September 16, Rupert Murdoch, the 93-year-old media titan, is fighting to secure the future of his media empire, which includes Fox News and the Wall Street Journal. This legal confrontation could have sweeping implications not just for the Murdoch dynasty but also for global media and political landscapes.
According to a sealed court document obtained by the New York Times, Murdoch aims to alter the terms of the family’s irrevocable trust, ensuring that his eldest son, Lachlan Murdoch, inherits control over the media conglomerate. This move potentially sidelines his other three children, who have differing political views and could challenge Lachlan’s leadership.
The Battle Over Media Control
The trust, which holds about a 40% stake in the voting shares of News Corp (NASDAQ:) and Fox, is the vehicle through which Rupert Murdoch has maintained control. Upon his death, these voting shares will be divided among his four eldest children—Prudence, Elisabeth, Lachlan, and James. However, Murdoch’s proposed amendment seeks to prevent his more politically moderate children from interfering with Lachlan’s control, as reported by the New York Times.
James Murdoch, who resigned from the News Corp board in 2020 amid disagreements over editorial content and has since shown progressive political leanings, could be a significant player in this family drama. His departure from the board followed his criticism of the U.S. media’s role in spreading disinformation about the 2020 election results. This ideological rift within the family adds another layer of complexity to the succession battle.
Legal and Media Implications
The legal proceedings in Reno, Nevada, far from the media hubs of New York, Los Angeles, London, and Sydney, will determine whether Rupert Murdoch's proposed changes to the trust are in good faith. Shane Jasmine Young, a Nevada attorney specializing in estate planning, emphasized that Murdoch must prove that the amendments do not "sacrifice the rights, or discriminate against, any of the parties that this trust was intended to protect."
A coalition of news organizations, including the New York Times, CNN, The Associated Press, and Multibagger, is pushing to unseal court records and allow public access to the hearings. They argue that the First Amendment demands transparency in civil judicial proceedings, especially given the public’s immense interest in the outcome of this succession battle. The decision could affect thousands of jobs, millions of media consumers, and the broader political landscape.
Paul Hardart, director of the Entertainment, Media, and Technology Program at New York University’s Stern School of Business, remarked, “The reason this is interesting is the outsized role that Fox News has played in the political landscape, both in the U.S. and around the world. This battle is a reflection of the future of not only the business but also how conservative media is managed going forward.”
Understanding the Impact
To break it down for everyone, this article covers a crucial family feud within the Murdoch dynasty over who will control some of the most influential media outlets in the world. Rupert Murdoch wants to ensure his son Lachlan, who shares his conservative views, remains in charge. This decision could affect major media outlets like Fox News and the Wall Street Journal, potentially influencing political narratives and information dissemination globally.
Why does this matter to you? The outcome could shape the news you consume, affect the political landscape, and even influence market dynamics. For investors, understanding who controls these media giants can provide insights into future market trends and the potential direction of public discourse.
Stay tuned as this legal saga unfolds, as it will undoubtedly have significant repercussions for media, politics, and the financial markets.