The Murdoch family has struck a fundamental deal on the long-term direction of their sprawling media conglomerate. This decision signals the conclusion of a controversial, high-profile succession battle that has captivated the public eye. Rupert Murdoch, the family’s patriarch, has in private settings let it be known that he is relying on Lachlan Murdoch. He is confident that Lachlan represents the right leadership to take the empire into the next generation. Claims of bad faith have been made in attempts to alter terms of an irrevocable trust. Since this trust controls the entirety of the family’s media empire, this move comes as a surprise.
In a little-publicized regulatory ruling, Colorado commissioner Edmund Gorman lifted the fog on these questionable goings-on around the trust. He described Rupert and Lachlan Murdoch’s behavior as a “carefully crafted charade” designed to ensure Lachlan’s continued occupation of executive suite. Additionally, a new long-term family trust has been created. Lachlan Murdoch will be succeeded by his half-sisters, Chloe and Grace—daughters of Rupert Murdoch and his third wife, Wendy Deng. This trust will dictate deadly serious stakes in Fox Corporation and News Corp, cementing Lachlan’s reign over family business empire.
Lachlan Murdoch is known for his conservative views and currently serves as the chair of News Corp, which oversees more than two dozen publications, including Fox News, The Wall Street Journal, and The Times in the UK. Under this new plan, he’ll obtain 100 percent controlling interest in the whole media conglomerate. Murdoch’s three eldest offspring—Prudence MacLeod, Elisabeth Murdoch and James Murdoch—will each personally get slightly more than $1.1 billion for their stakes in the family empire. This resolution appears to calm some of the members of the family.
Not surprisingly, the background to this resolution has been contentious. In particular, his brother, James Murdoch has been outspoken against his father. He called him a “misogynist” and described Fox News as a “menace” to democracy within the United States. This temporary public mode of discourse belies the deeper ideological and monetary rifts that have grown up between Lachlan Murdoch and his brethren. The succession dispute flared further even as Rupert Murdoch sought to amass more voting control. He proposed a widely debated scheme, “Project Family Harmony,” that would place sole operational control of the family’s media businesses in Lachlan’s hands.
Elisabeth and James Murdoch instigated a legal battle against their wily father in Reno, Nevada. They sought to prevent these changes to their voting rights through this diabolically effective but very nasty strategy. Rupert Murdoch expressed a deep commitment to family harmony as negotiations moved on. He proclaimed, “I wish there was nothing but peace everywhere.” Whether this latest settlement will actually bring peace between the half-siblings is uncertain.