A Nevada court has ruled that Rupert Murdoch’s four oldest children will retain equal control over his media empire upon his death after a bid from Rupert sought to give sole power to his eldest son, Lachlan.
Back in July, it was revealed that Rupert had taken three of his adult children, James, Elisabeth and Prudence, to court in an attempt to revoke their voting power over the Murdoch Trust. Sealed court documents obtained by the New York Times at the time revealed that Rupert was contending that Lachlan should have exclusive control over the family’s investments, including Fox News, the Wall Street Journal, the New York Post, The Australian, as well as the Sun and the Times in the UK.
Rupert, who had called the attempt to change the trust “Project Harmony” and cited a feared power struggle in the family after his death, reportedly blindsided his children when the proceedings were filed.
The high-profile family battle happened behind closed doors despite the media’s attempts to gain access. According to reports in the New York Times, the sealed court decision was filed on Saturday.
Nevada commissioner Edmund Gorman reviewed the case and concluded that Rupert and Lachlan were acting in “bad faith” in their attempts to change the terms of an irrevocable trust that divided the control of the empire between Murdoch’s four oldest children.
The 96-page opinion accused the media mogul of organising a “carefully crafted charade” that would “permanently cement Lachlan Murdoch’s executive roles” regardless “of the impacts such control would have over the companies or the beneficiaries” of the trust.
A lawyer for Rupert, Adam Streisand, said the media giant was disappointed with the ruling and intended to appeal the court’s decision.
If the decision were to hold, it would raise questions over what the future looks like for the largely right-wing media empire.
Lachlan Murdoch is seen as the most conservative of Rupert’s children, with his father asserting that Lachlan’s political stance is vital for maintaining the value of the right-leaning media properties. Last November, Lachlan assumed the role of chair of News Corporation and Fox Corporation, the parent company of Fox News, following his father’s announcement that he was stepping down after a seven-decade career as one of the most influential—and contentious—media moguls in history.
James, Elisabeth and Prudence are considered far less conservative. James, in particular, has openly spoken out against climate denialism in the media and has accused the United States media of “propagating lies” after the January 6 insurrection. He has also held fundraisers for President Joe Biden and publically endorsed Kamala Harris.
Sky News commentator Andrew Bolt expressed his hesitation with the current arrangement at the time, threatening to resign if James were to take over the media empire. “James could sack me if he did take over, but he wouldn’t need to. I wouldn’t be the only one who wouldn’t work for him,” Bolt said. “It’s a values thing. A freedom thing. I don’t know if he gets that”.
James resigned from the News Corp board in 2020 amid editorial differences. The Sky News host denied consulting Lachlan over his comments and questioned why James would seek to take over a media business that “he hates and would destroy”.
“So, what on earth is James fighting for?” he said. “Can’t imagine the other shareholders would like that”.
Bolt implored James to see reason and leave the media brand alone. “Your father is right. Keeping Lachlan in the job, stopping you, is in your interests too,”.
This landmark decision could see James, Prudence and Elisabeth, a media executive in her own right who is known to hold central political views, lead the Murdoch empire in a much more moderate direction.
