A Nevada probate commissioner has blocked Rupert Murdoch’s attempt to modify his family trust, a move aimed at granting his son Lachlan Murdoch greater control over the media empire and ensuring Fox News maintains its conservative editorial direction. The decision, detailed in a sealed document obtained by The New York Times, highlights a significant family and corporate power struggle.
The existing trust mandates equal control of the company among Rupert Murdoch’s four children – Prudence, Elisabeth, Lachlan, and James – upon his death. Lachlan Murdoch currently leads Fox News and News Corp, assuming the helm after his father stepped down late last year. Rupert Murdoch contended that altering the trust was essential to preserve the businesses’ value for all heirs by allowing Lachlan to uphold Fox News’ conservative stance. This argument stems from the perceived less-conservative political leanings of James and Elisabeth Murdoch, potentially jeopardizing the network’s ideological alignment.
However, Probate Commissioner Edmund J. Gorman Jr. of Nevada’s Second Judicial District Court rejected this rationale. In a comprehensive 96-page opinion, he characterized the proposed trust modification as a “carefully crafted charade” designed to solidify Lachlan Murdoch’s executive authority, irrespective of the potential consequences for the companies or the trust’s beneficiaries. The commissioner deemed the plan an attempt to unfairly favor Lachlan Murdoch’s succession and ensure his unchallengeable control after Rupert Murdoch’s passing.
Gorman’s ruling explicitly criticizes the attempt to manipulate the succession process, drawing a parallel to a poker game where “bluffs are called and the cards lie face up.” He concluded that the court, having examined the evidence, recognizes the scheme for what it is and will not allow this “raw deal” to succeed.
Rupert Murdoch’s lawyer, Adam Streisand, expressed disappointment with the decision and announced their intention to appeal. Conversely, a spokesperson for Prudence, Elisabeth, and James Murdoch welcomed the ruling, expressing hope for improved family relationships and a focus on strengthening the businesses. This legal battle underscores the complex interplay of family dynamics, corporate governance, and ideological considerations within the Murdoch media empire. The outcome of the appeal will significantly impact the future leadership and direction of Fox News and News Corp.
The commissioner’s decision has significant implications for the future of the Murdoch media empire, potentially reshaping the leadership and direction of Fox News and News Corp. The legal battle underscores the complex interplay of family dynamics, corporate governance, and ideological considerations within a powerful media conglomerate.
