The Murdoch empire, a sprawling media conglomerate that includes major outlets like Fox News, HarperCollins, and The Times, faces unprecedented turmoil as family disagreements threaten its future. Rupert Murdoch's six children stand at the center of this unfolding saga, with only two set to inherit an economic stake without any controlling power. These internal conflicts among the heirs have left the business in a state of uncertainty and speculation.
Media analyst Claire Enders, who has studied the Murdoch empire for four decades, finds little logic in the recent developments. The family's business, known for its significant profits and political influence, remains attractive to Rupert's heirs, including his 13 grandchildren. However, the internal discord could jeopardize the empire's stability and future prospects.
Rebekah Brooks, CEO of News UK and often referred to as "Rupert's seventh child," remains an influential figure within the company. Despite her close ties to Rupert, she remains an employee rather than a stakeholder. The four eldest Murdoch children—Lachlan, James, Elisabeth, and Prudence—were poised to inherit the family firm, but recent disagreements have complicated the succession plan.
A former adviser expressed frustration at how the family's disputes could impact the business.
“It’s hard to overstate how uncertain everyone associated with the company feels right now. You’ve got some great journalists doing great work while squabbling billionaires fall out over even more money.” – A former adviser
The Murdoch empire encompasses Dow Jones, which includes The Wall Street Journal, and HarperCollins, the world’s second-largest consumer book publisher. However, challenges abound as the title's overall value plummeted to zero in 2021 due to financial payouts and difficulties in transitioning to a digital-only model.
James Murdoch's criticism of his father's "reactionary" and "white nativist" ideas further fueled tensions within the family. His allegations of Rupert being a "misogynist" who overlooks his older sisters' abilities add another layer of complexity to the family's saga. James was about to be sent to Asia to manage Star TV before these disagreements became public.
“My father’s politics and mine, which I think I understand better than many do, are probably reasonably close,” – James Murdoch
“I think he is vastly misunderstood politically.” – James Murdoch
Fox News remains the most profitable part of the Murdoch empire and is likely to be the easiest asset to sell in the short term. In contrast, The Times and its Sunday sister title are performing well but face difficulties due to complexities in selling a UK newspaper.
“You wouldn’t even be able to put a valuation on those companies [the UK newspapers] because of the rules in place on foreign ownership.” – Claire Enders
The family's legal battles intensified when three of Rupert's children filed a lawsuit against him and Lachlan. A Nevada commissioner ruled in favor of these siblings, accusing Rupert and Lachlan of acting in "bad faith." This ruling has further strained family ties and added to the empire's instability.
The family's disagreements have been exacerbated by the recent settlement with Prince Harry over a phone hacking scandal dating back to 2011. This settlement has reignited old wounds and contributed to the growing rift within the family.
Michael Wolff, a noted observer of media empires, commented on the potential collapse of the Murdoch empire.
“I think that we’re clearly heading toward that [collapse]…Lachlan will be fired and the rest of the company will be dismantled.” – Michael Wolff
Despite these challenges, some insiders dismiss rumors of drastic actions by the three siblings.
“the idea that the three siblings gang up and set up Guardian TV is ridiculous.” – A family adviser
Claire Enders questions the rationale behind these familial disputes.
“As a business analyst, I don’t see what the purpose was. I don’t see what they’re in such great disagreement about, since they’ve all contributed hugely to the value created since the nadir of the company only 13 years ago.” – Claire Enders
A spokesperson for Rupert and Lachlan dismissed accusations against them as unfounded.
“the litany of falsehoods” – A spokesperson for Rupert and Lachlan
“from someone who no longer works for the companies but still benefits from them financially” – A spokesperson for Rupert and Lachlan