Lachlan Murdoch Takes Control in Succession Deal Ending Family Feud

The years-long saga of the Murdoch family’s internal power struggle has finally reached its conclusion. In a resolution that has been likened to a real-life television drama, Lachlan Murdoch, widely seen as his father's preferred successor, is set to take sole control of the vast conservative media empire. The deal, announced on Monday, brings to an end a tense legal battle and ensures that the sprawling conglomerate—which includes influential outlets such as Fox News and The Wall Street Journal—will maintain its established political leanings for the foreseeable future.

The settlement represents a resounding victory for Rupert Murdoch, the 94-year-old media titan who had long been worried about the direction of his empire after his death. The legal fight was fueled by a deep-seated ideological divide between the siblings. Lachlan, who has been at the helm of the company since Rupert stepped back in 2023, is regarded as the most politically conservative of the four older Murdoch children. His three siblings, Prudence MacLeod, Elisabeth Murdoch, and James Murdoch, are considered to have a more politically moderate or "small 'l' liberal bent."

The Ideological Divide and the Father’s Fear

For Rupert Murdoch, the heart of the matter was not just who would run the companies but what their purpose would be. Former editor of the Sunday Times, Andrew Neil, described the outcome as a success for Rupert, albeit "an expensive success." He noted that Rupert’s greatest fear was that Lachlan would be outvoted by his siblings on key decisions, potentially swaying the political direction of the empire.

The family’s trust, which was established to manage the voting shares of News Corp and Fox Corp, previously gave each of the four older children an equal vote. This was a particularly acute concern given James’s public disagreements with the company’s editorial content, especially their reporting on climate change and the 2020 US election. According to communication professor Matthew Ricketson, James had taken issue with Fox News for giving a platform to theories about the 2020 election that contradicted the widely accepted outcome. The deal announced this week was designed to prevent that very outcome. Lachlan will now be "king of the hill in a new trust that will have control of the organisation," free from any potential "interference from his siblings," as Neil explained to the BBC.

A Bitter Legal Battle Fought in Secret

The path to this resolution was fraught with tension and unfolded in a particularly dramatic manner. The legal battle began when Rupert took the unexpected step of trying to unilaterally alter the terms of the family's trust. The legal proceedings largely unfolded behind closed doors in Nevada, a state that affords unusual privacy for family trust disputes. Rupert’s attempt to ensure his empire would fall solely into Lachlan’s hands, rather than being shared among the four oldest children, was met with a legal challenge from James, Elisabeth, and Prudence.

Initially, a court ruled that Rupert could amend the document if he was acting in "good faith." However, a subsequent ruling in a Reno court reversed that finding, determining that both Rupert and Lachlan had acted in "bad faith" by trying to amend the trust. With the legal battle bogged down in a complex appeals process, the family was forced to find a different way to reach a resolution, which ultimately led to Monday’s settlement. The agreement was described as a "mutual resolution of the legal proceedings," a phrase that belies the bitter legal and personal fighting that took place over the last two years.

The Price of Control: A $3.3 Billion Settlement

The settlement provides the three dissenting siblings with a staggering financial payout while preventing them from having any influence over the political direction of the family's media conglomerate. According to a person with knowledge of the matter, Prudence, Elisabeth, and James will each receive an estimated $1.1 billion. The money will come from the sale of their holdings in Fox and News Corp, which amounts to about 14.2 million shares of News Corp and 16.9 million shares of Fox Corp. The sale of their shares will add to their existing inheritance but, most critically, will sever their ties to the business.

Following the settlement, a new family company managed by Lachlan will hold a 36 percent voting stake in Fox and 33 percent in News Corp. Prudence, Elisabeth, and James will no longer hold any interest in the two companies. For Rupert and Lachlan, this was the most crucial part of the deal: an ironclad guarantee that the value of the media conglomerate, which they argue comes in large part from its political positioning, will not be compromised.

While the battle for control is now resolved, it has come at a great personal cost. Professor Ricketson noted the bitter irony of a man who described his empire as a "family business" having effectively "torn apart his family in the process." While the business succession is now settled, it is clear that the personal relationships of the Murdoch family have been permanently altered.