Murdoch Family Trust Dispute Settlement Shifts Control to Lachlan Murdoch
A recent Nevada trust dispute settlement has significantly altered the Murdoch family's business landscape, cutting Elisabeth Murdoch, James Murdoch, and Prudence Murdoch out of the family firm and making each approximately $1 billion richer.
Lachlan Murdoch is now positioned as the definitive heir to lead the business following Rupert Murdoch’s eventual death. The siblings have sold their shares and are barred from making future equity purchases.
The 1999 family trust, created during Rupert Murdoch’s divorce from Anna Murdoch, was originally designed to give equal control to Rupert and Anna’s children after his death. However, a judge deemed the changes to the trust were made in bad faith.
Despite the settlement occurring three months ago, the Murdoch family remains deeply divided, with reports indicating estrangement between Lachlan and his siblings.
Under Lachlan’s leadership, Fox Corp has expanded into digital and streaming services, with Tubi becoming profitable and Fox News maintaining strong ratings. The company’s share price has reportedly doubled.
The settlement involved payouts to Rupert Murdoch’s children, but analysts note that the associated debt burden on the business could pressure the company toward profit-focused strategies, potentially leading to more aggressive content choices.
Rupert Murdoch, who remains active at 94, continues to wield influence within the company and has been involved in notable political events, including engagements with Donald Trump.
Observers suggest the family rift may be permanent, and analysts warn that the increased debt could incentivize more sensationalist and polarizing journalism to sustain profits.
Anna Murdoch, in her 1980s novel Family Business, had warned that succession pressures could cause heartbreak and hardship for the children, a foreshadowing of the tensions now evident within the family.
