The power struggle within Rupert Murdoch’s media empire has come to a close as the heir to the media empire has been announced. The family confirmed that Lachlan Murdoch, Rupert’s eldest son, will assume control over the world’s most powerful media empire, which includes Fox News, The Wall Street Journal, and The Times, a report by The Guardian stated. As part of the agreement, his three children- Prudence, Elisabeth and James – will receive approximately $1.1 billion each in exchange for their ownership stakes, Bloomberg reported. The outlet further said that they won’t be the beneficiaries of the trust which controls Fox Corp and News Corp.
This resolution puts an end to a protracted legal battle among the 94-year-old’s children for control over their father’s business. The announcement also ensures that the media group’s conservative stance remains intact, as Lachlan is widely regarded as the most conservative of Rupert’s heirs.
Lachlan currently serves as the chairman of News Corp, which owns more than two dozen media outlets, including The Journal, The Times, and The New York Post. He took over from his father in 2023.
According to court filings, per The Guardian, Rupert believed Lachlan was best positioned to lead the company. “Would love nothing more than peace all around. But the fact remains, Lachlan is the best to run the business, greatly respected inside and outside!” he wrote to his ex-wife Anna. She is the mother of Elisabeth, Lachlan and James.
What’s the new deal?
Under the new deal, the company led by Lachlan will hold a 36% voting stake in Fox and 33% in News Corp. Rupert holds a 40% voting stake in both companies. Since the three children will no longer be involved in the business, News Corp. and Fox will sell shares worth about $1.4 billion.
According to Bloomberg, Lachlan will head a new company that plans to acquire more shares from the family, using part of a $1 billion loan to finance the purchase. Rupert’s two youngest children will join as co-owners of the new entity.
Legal battle over voting rights
The legal battle began in 2023 when Rupert wanted to put Lachlan in charge of the business. It, however, escalated when Rupert attempted to strip his children of their voting rights and eventually led to litigation in Reno, Nevada.
According to a report by Bloomberg, it was previously decided that his four children would take over the trust and would get one vote each. However, it was feared that the remaining three children might form a team and oust Lachlan.
Differences within the family, especially over political viewpoints, fueled the discord. James Murdoch has been a vocal critic of the media’s editorial slant, particularly its stance on climate change and support for former President Donald Trump, who is also suing The Wall Street Journal.
In an interview earlier this year in the Atlantic, James described his father as a “misogynist” and called Fox News a “threat” to American democracy. The report noted that James and Rupert had barely communicated in recent years.
His second-oldest son, per Bloomberg, also noted that he won’t make any changes to the way Fox News reports, but that the outlet should refrain from spreading misinformation.
The Murdoch family also owns HarperCollins Publishing and the rapidly growing free streaming platform Tubi.
News Corp’s statement
In response to the settlement, News Corp’s board said that it “welcomes” the decision and believes that he will drive the company towards “long-term success”.
“We welcome these developments and believe that Lachlan Murdoch’s leadership, vision, and management will remain essential in driving the company’s strategic direction and long-term success.”