The succession battle playing out in a Nevada courtroom this month between Rupert Murdoch’s four oldest children could ultimately decide who controls Fox News and the Wall Street Journal, two of the most influential US news outlets.
Murdoch, 93, is seeking to change an irrevocable family trust to favour his eldest son Lachlan as his successor, prompting three other children, Prudence, Elisabeth and James, to fight back in probate court in Reno. If Murdoch gets his way, Lachlan will control Fox Corp. and News Corp. after his death, rather than dividing power among the four, as the trust had prescribed.
To some extent, the legal fight is also a report card on Lachlan’s business prowess. Rupert has argued that the legal change will be good for all of his six children, the beneficiaries of the trust, according to people familiar with the case who asked to not be identified. He has said Lachlan’s political leanings make him a better steward of the media outlets, which are popular with conservatives.
Some Murdoch family insiders complain that Fox shares have underperformed the market under Lachlan’s direction, and that Fox News has not come up with a plan to outlive its ageing but loyal viewership.
In the past five years under Lachlan, Fox shares have trailed the broad market. But their 18 per cent gain over that period is better than many traditional TV industry peers, including Walt Disney Co., Warner Bros. Discovery Inc. and Paramount Global, according to Alan Gould, an analyst with Loop Capital Markets.