According to The Times, Murdoch believed changing the terms of the trust would prevent a bitter battle between the siblings. It has seemingly done the opposite.
In June, the Nevada probate commissioner ruled that if Rupert Murdoch could show he was acting in good faith, and for the benefit of his heirs, he could amend the terms of the trust. Whether he can prove that will be determined in the Reno showdown.
Overnight, hedge fund Starboard Value confirmed it had filed a shareholder resolution to eliminate the dual-class share structure that allows Murdoch to control the company.
Who are the main players?
Elisabeth, Lachlan and James Murdoch are the children of Rupert Murdoch and his second wife, Anna. Their elder half-sister, Prudence, is the daughter of Rupert and his first wife, Patricia.
In 2014, nine years after leaving News Corp, Lachlan returned to the family business, and was appointed co-chair of 21st Century Fox alongside his brother James.
Lachlan has since won out against his brother. James quit News Corp in 2020, citing disagreements over editorial content, including its coverage of climate change. He now runs his own investment fund, and sits on the board of Tesla.
Rupert Murdoch with his sons Lachlan (L) and James as they arrive at St Bride’s church for a service to celebrate the wedding between Rupert Murdoch and former supermodel Jerry Hall.Credit: PETER NICHOLLS
Lachlan was appointed sole chair of News and Fox Corp in 2023.
Elisabeth has had a successful career outside the family business, founding TV production company Shine, while Prudence has largely stayed away from the media business.
Chloe and Grace, Rupert’s youngest children from his third marriage, have an equal share of the trust’s equity, but they have no voting rights.
Why would Rupert prefer Lachlan to be News Corp’s successor?
As this masthead’s Elizabeth Knight wrote in July, the real agenda most likely centres on power and control.
“He wants his business empire to continue to reflect his political views by giving control to the child who is most closely cut from his ideological cloth: Lachlan,” Knight wrote.
Lachlan has grown “increasingly conservative with age” like his father, his biographer Paddy Manning wrote last year.
The eldest son has proven over time to be aligned with his father on most things, including the commercial and political direction of both companies. Lachlan appointed former Liberal prime minister and close friend Tony Abbott to the board of Fox last year.
James, however, has just endorsed Kamala Harris for president, adding his name to a list of 88 US business leaders who have thrown their support behind the Democratic nominee.
Why is it a closed court case?
As things stand, the court case is closed to media but this may change before proceedings begin. Washoe County’s Second Judicial District Court decided early on to seal the proceedings and public logs for the dispute. Nevada judge David Hardy argued press access to the court case would “harm the parties’ legislatively protected confidentiality rights”.
As Puck’s Eriq Gardner noted, the Murdochs’ efforts to keep this case out of the public eye strikes as somewhat hypocritical, given their media brands having “been known to play fast and loose with privacy norms: look no further than page six or the UK phone-hacking scandal”.
Last week, a petition was filed to allow the proceedings to be televised. Alexander Falconi, a software engineer and legal activist, has launched an attempt to unseal the court case and allow cameras into the courtroom.
What are the implications of the case for News Corp?
At stake are some of the English-speaking world’s most politically influential media brands. Top of the pile is conservative news network Fox News, which has unparalleled influence in right-leaning politics in America.
News Corp houses well-known newspaper brands including The Wall Street Journal, The New York Post, British papers The Times and The Sun as well as local mastheads The Australian, Herald Sun and The Daily Telegraph. It also owns a local conservative news channel, Sky News Australia.
Should Rupert get his way, Lachlan would be likely to maintain those media assets’ conservative bent, potentially going further, buoyed by the prospect of a second Trump presidency.
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If he doesn’t, Murdoch opens his empire up to the prospect of being run by a far more moderate figure in James or Elisabeth. Sky News’ after dark talking head Andrew Bolt has already said he will quit should that happen.