Rupert Murdoch is locked in a legal battle with three of his children over the future of his media empire, it has been claimed.
Mr Murdoch is said to be in a dispute with three of his children - James, Elisabeth and Prudence - over efforts to hand sole control of the family’s TV and newspaper businesses to eldest son, Lachlan, after he dies, according to the New York Times citing private court filings.
An attempt to change the terms of a family trust that has controlling stakes in businesses including Fox News and The Times is said to have triggered a legal dispute among the family.
As it stands, the trust reportedly hands equal control to all four of Mr Murdoch’s eldest children in the event of his death. However, the 93-year-old has sought to change the terms so that Lachlan assumes sole control.
The family trust is “irrevocable”. However, it is said to contain a provision allowing for changes to be done in good faith if they have the sole purpose of benefiting all of the beneficiaries.
Mr Mudoch sought to change the terms late last year, according to the New York Times, and last month the Nevada probate commissioner reportedly ruled that he could amend the trust if he could show he was acting in good faith and for the sole benefit of his heirs. Nevada is a popular US state for family trusts because of favourable laws and privacy protections.
Mr Murdoch’s lawyers have reportedly said they are trying to protect James, Elisabeth and Prudence, arguing that divided control could undermine the health of the business and damage their inheritance. The issue will reportedly go to trial in September to determine whether Mr Murdoch is indeed acting in good faith.
Under the terms of current trust, Mr Murdoch cannot be outvoted, according to the New York Times. The patriarch reportedly wants to establish a similar arrangement for Lachlan. It is understood that the changes wouldn’t affect ownership stakes.
The rationale is that a “lack of consensus” among the children “would impact the strategic direction at both companies including a potential reorientation of editorial policy and content”, according to court papers seen by The New York Times.
A spokesman for News UK declined to comment. A representative of the Murdoch family was contacted for comment. Both sides declined to comment to the New York Times.
The dispute echoes the power struggles depicted in Succession, the TV show that was closely inspired by the life of the Murdochs as well as other media dynasties.
Lachlan, 52, has been positioned as his father’s heir apparent in recent years after assuming the role of chief executive and chairman of TV group Fox Corporation in 2019 and chairman of News Corp last year. News Corp controls newspapers in the US, UK and Australia, including The Times, The Sun and The Wall Street Journal.
Mr Murdoch has always sought to position one of his children to take over the running of his media empire, with Elisabeth and James seen as potential candidates at various times.
However, both have drifted away from the family business over the years. Elisabeth, 55, left her father’s British TV business BSkyB in 2000 and today runs a film studio. James, 51, was an executive at Fox until 2019.
Both have more liberal politics than their father. James and his wife issued a rare public statement criticising his father’s newspapers and TV channels for the way they covered climate change in 2020. Elisabeth hosted a fundraiser for Barack Obama in 2008.
Mr Murdoch has for decades been a kingmaker in conservative politics across the English-speaking world and was pictured at the Republican National Convention in Milwaukee last week.
The Australian-born billionaire has been married five times and has six children. He had Prudence Murdoch with his first wife, Patricia Booker, while Elisabeth, Lachlan and James were the product of his second, and longest, marriage to Anna Torv. He had two children with his third wife, Wendi Deng.
The media tycoon tied the knot for the fifth time in June, wedding Moscow-born Elena Zhukova at a Californian vineyard.
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