Rupert Murdoch ‘Succession’ Court Battle Begins 2024

The legal battle over Rupert Murdoch ‘Succession’ begins, as the media tycoon faces off with his children in a case that could shape the future of his empire.

At stake is the future of a global media empire that has taken seventy years to construct and can trace its roots back to when Mr Murdoch inherited his first newspaper. Starting this week in the US, the dispute concerns a £14.9bn family trust Control of News Corporation and Fox News, some of the most powerful media entities in the world, pivots on this trust.

The Murdoch Empire at a Crossroads

Mr. Murdoch set up the family trust in 1999 to prepare for his death, which involved at least some of his vast media holdings. But a spat within the family last week has been little short of a revolution taking place. Thus, news arrived that Murdoch had tried to change the trust so Lachlan could inherit the family media empire without run-ins from his brother and sisters—Prudence, Elisabeth, and James.

Australian journalist Walter Marsh (author of the Murdoch biography Young Rupert: The Making of the Murdoch Empire) said: “This effectively aims to put Prudence, James, and Elisabeth on a level playing field with Murdoch’s two young daughters.” There has been speculation though that eventually all voting power will go to Lachlan.

A Family Power Struggle

The Murdoch family is an enigma in many ways, due largely to the control they exert over a media empire that stretches around the globe and that has no small effect on politics, society, and public life. At the heart of this power struggle are News Corporation — which owns Newspapers like The Times and The Sun in the UK, YouGov stakes, New York Post ( among other papers again), and Fox (and therefore presumably all its assets including Fox News) — and Murdochs on one side.

Murdochs are widely going with a Succession plot, a family saga — although the Murdochs have never publicly addressed and declared that their family drama is much like the British TV series on a media dynasty eating itself. By several accounts, the tensions within the family have been boiling for years. Rupert Murdoch started grooming his two sons for leadership when they were in their teens, according to journalist Andrew Neil in the BBC documentary The Rise of the Murdoch Dynasty. “Family has always been the top for Rupert Murdoch, especially in terms of breeding a dynasty,” Neil observed.

The Structure of the Trust

Rupert Murdoch formed the Murdoch Family Trust in 1999 as a planned succession vehicle for his businesses. Family members control eight of the trust’s votes, which are enough to sway business decisions at News Corporation and Fox News. At the moment, Mr. Murdoch holds four of those votes to one each for his four eldest children—Prudence, Elisabeth, Lachlan, and James.

Under the original arrangement, Mr. Murdoch’s four votes were to be divided among his four oldest children after he died But differences of opinion and political views have caused a family split to be reported. His siblings reportedly united against it, but Lachlan is believed to have stood by his dad’s right-wing views (he got Murdoch mimeograph police Rupert Murdoch to let him take over the media empire, ultimately).

The Legal Battle Unfolds

The court case is being heard in the Washoe County Courthouse, Reno, Nevada. The 3-week trial is likely to see Mr Murdoch and his 4 eldest children take the stand in the coming week. That said, the hearing is in camera and so far media have been excluded from the proceedings, meaning details of what was the latest frazzled courtroom drama here are impossible to pin down.

Commercial interests, Alice Enders, head of research at Enders Analysis notes that “The court battle is really about commercial stakes”. The changes must be agreed upon by the siblings or they can choose a buy-out option, which is worth millions.

In this area of family law, these kinds of disputes usually conclude by way of some settlement, although there is a possibility for extended conflict before the other party agrees and a long-term possibility that one side or another will take the matter to court on an appeal.

The Players in the Family Saga

Murdoch has six children and has been married five times. Prudence, his eldest child, was born in his first marriage to Patricia Booker. Elisabeth, Lachlan, and James are from his second marriage to Anna Mann (1967-1999). He had them with his wife Wendi Deng, whom he was married to from 1999 till 2013.

The family trust was established with voting rights and Grace and Chloe have none [sic] so it just adds layers of complexity to the situation. He divorced model Jerry Hall in 2002, his fourth marriage. This past year, he married for the fifth time to Elena Zhukova.

What’s Next?

Now the saga may take a new turn, as the world watches the Murdoch family’s inside story play out in a courtroom far from the boardrooms where so many of their decisions have molded media culture throughout much of the globe. Is it going to be Lachlan who wins out, or are Prudence, Elisabeth and James coming together in unity to forge a new way? Only time will tell.

The full details of the bombshell court case have resurfaced the long-standing battles over control of the Murdoch family business — and with them a potential new chapter in one of the world’s most powerful media dynasties. Although settlements frequently are the preferred resolution for such family disputes, the political and financial stakes associated with ownership of News Corporation and Fox News ensure that this case may never be settled.