Rupert Murdoch locked in secret legal battle with children over future of media empire

Murdoch bidding to secure right-leaning future of media empire

Rupert Murdoch is engaged in a secret legal battle with three of his children over the future direction of the family’s media empire.

Murdoch, 93, is attempting to ensure his eldest son and heir apparent, Lachlan, has more control over the future of his businesses by securing him greater voting power compared to his siblings, a sealed court document seen by The New York Times has revealed.

The question of who will take over Murdoch’s sprawling empire, which includes Fox News, the Wall Street Journal and British assets including The Sun and Times newspapers, has captured the attention of the public in recent years – with the storyline having even partially inspired the acclaimed HBO series Succession.

Upon announcing his retirement in September, Murdoch appeared to settle the debate by naming his right-leaning son Lachlan as chair of News Corp and chair and chief executive of Fox Corp.

However, he has now moved to ensure these arrangements remain in place after his death, by legally ensuring the 52-year-old cannot be vetoed by three of his more politically moderate siblings.

Rupert Murdoch with his sons Lachlan (L) and James (R) in 2016 (Getty)

At present, the Murdoch Family Trust has eight votes: four controlled by Murdoch senior, and the remaining four controlled by the four eldest children; Lachlan, James, Elisabeth and Prudence Murdoch.

The NYT said the patriarch has moved to change the terms of the trust in court to increase Lachlan’s voting power and protect the empire’s conservative political stance, therefore protecting the commercial value for all his heirs.

James, Elisabeth and Prudence have different political leanings from their father and favoured brother, sparking concerns that they could steer the empire away from its right-wing instincts.

Mr Murdoch’s youngest children, Chloe and Grace, have no voting rights in the trust but have an equal share in its equity.

In the sealed documents, Murdoch expresses his worry that a “lack of consensus” among his four children “would impact the strategic direction at both companies including a potential reorientation of editorial policy and content”, adding that he also wishes to hand Lachlan Murdoch “permanent” and “exclusive” control over the company.

Rupert Murdoch with his second wife, Anna Maria Torv, and four eldest children Prudence, Elisabeth, James and Lachlan Murdoch (Alamy)

According to the NYT, a Nevada probate commissioner found last month that the trust can be rewritten if Murdoch can prove he is acting in good faith to protect the value of the trust’s holdings.

If a solution is not reached however, the case could play out in court in September.

Murdoch has reportedly called the changes “Project Harmony”, as it would stave off further family feuds after his death, but this appears to have had the opposite effect with the three ousted siblings joining forces to fight the case.

Up until now, the legal proceedings have played out behind closed doors despite the motion being filed in December.

It may explain his children’s absence as he married his fifth wife, Elena Zhukova, in California last month, with only Lachlan in attendance.

Only Lachlan attended his wedding to his fifth wife Elena Zhukova (PA)

At one point in the company’s dramatic tale, it appeared as if younger brother James would be the likely heir, but as Murdoch grew more closely aligned with Lachlan politically, his relationship with James is said to have fractured.

Between 2015 and 2019, James and Lachlan shared operating responsibility for the companies. However, this working relationship broke down during the rise and presidency of Donald Trump, with James’ concerns about the network’s preferential treatment of Trump being dismissed.

He later stepped down from the News Corp board in 2020, citing “disagreements over certain editorial content published by the company’s news outlets”.

He and his wife, Kathryn, a climate change activist, have also occasionally criticised Fox media for their denial of climate change.

The NYT report detailed how Mr Murdoch has come to resent the criticisms from his son given the empire has made him a multi-billionaire.

Mr Murdoch, is reported to have a net worth of over $17bn (£13.8bn) according to Forbes, having spent 70 years at the helm of his media empire before retiring last year.

Rupert Murdoch first started to build his empire in Australia during the 1950s after he inherited his father’s interests in the Adelaide newspaper The News (PA)

News Corp, which has headquarters in New York, owns hundreds of local, national and international news outlets. The company owns the Wall Street Journal and the New York Post, a conservative-leaning tabloid, as well as HarperCollins.

The British arm of Murdoch’s media empire, News UK, publishes nearly a third of national papers sold every day, including The Sun and The Times.

Mr Murdoch first started to build his empire in Australia during the 1950s after he inherited his father’s interests in the Adelaide newspaper The News.

In 1969, he took on Fleet Street with the purchase of the News of the World and The Sun, which would both become two of the most successful and bestselling tabloids in the UK.

He went on to purchase The Times and Sunday Times in 1981, while also building his empire in America with the acquisition of the New York Post.

Murdoch later expanded into television to create Fox News channel, now the most popular news network in the US.

The Independent has contacted representatives from Rupert Murdoch for comment.