A Nevada probate commissioner has rejected Rupert Murdoch's attempt to modify his family's trust to grant his son, Lachlan Murdoch, control over Fox News and the broader media empire.
The decision, filed on December 7, concluded that the elder Murdoch and Lachlan acted in bad faith while trying to alter the terms of the irrevocable trust.
Murdoch Family Tensions Erupt as Judge Denies Plan to Favor Lachlan Murdoch
The family trust currently divides control of the media empire equally among Murdoch's four children: Prudence, Elisabeth, Lachlan, and James.
Rupert Murdoch, 93, sought to amend this arrangement to secure Lachlan's leadership role and maintain Fox News's conservative editorial stance, CBS News said.
The move faced strong opposition from other family members, particularly James and Elisabeth, who hold less-conservative views compared to their father and brother.
In his 96-page ruling, Probate Commissioner Edmund J. Gorman Jr. described the proposed changes as a "carefully crafted charade" designed to solidify Lachlan's control indefinitely.
Gorman's decision emphasized that the proposed amendments disregarded the interests of other beneficiaries and prioritized Lachlan's executive roles over the equitable governance of the family's media assets.
The family trust oversees a media empire that includes Fox News, The Wall Street Journal, and the New York Post.
Lachlan Murdoch has been leading Fox News and News Corp since his father stepped down last year. Rupert Murdoch argued that ensuring Lachlan's leadership was vital to preserving the commercial value and ideological consistency of Fox News.
This ruling brings to light the tensions within the Murdoch family, as differing political views complicate succession planning. James and Elisabeth have been critical of Fox News's conservative leanings, raising concerns about the network's future direction if control is not firmly established.
Court Upholds Equal Control Among Heirs
According to CSMonitor, the court's decision is a significant setback for Rupert and Lachlan Murdoch. Adam Streisand, the elder Murdoch's attorney, expressed disappointment and indicated plans to appeal the ruling.
Meanwhile, a spokesperson for Prudence, Elisabeth, and James Murdoch welcomed the decision, urging the family to focus on rebuilding relationships rather than litigating disputes.
This high-profile case highlights the complexities of succession planning in family-owned businesses, particularly those with substantial political and cultural influence.
For decades, Rupert Murdoch has been a polarizing figure in the media, shaping Fox News into a conservative powerhouse that has dominated US cable news ratings since its launch in 1996.
Commissioner Gorman's decision also included sharp criticism of the motivations behind the proposed amendments.
He likened the legal proceedings to a poker game, where "all bluffs are called, and the cards lie face up." Ultimately, Gorman ruled that the effort to alter the trust was a "raw deal" that could not stand under Nevada law.
The legal battle over the family trust underscores broader questions about the future of Fox News and its role in shaping public opinion.
For now, control remains divided among Rupert Murdoch's four children, preserving the balance of power within one of the world's most influential media empires.
