Friday, November 22, 2024

The fight for the future of the Murdoch media empire is about to begin

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The battle for Rupert Murdoch’s global media kingdom is headed to the biggest little city in the world.

Murdoch, the 93-year-old billionaire press baron, reportedly wants to alter the terms of an irrevocable trust so that his eldest son, Lachlan, inherits his throne and keeps control of prized assets such as Fox News and The Wall Street Journal. But three of the mogul’s other children — James, Elisabeth and Prudence — are pushing back, insisting that all four siblings continue to receive equal voting shares.

The family feud goes before a judge at the Washoe County Courthouse in Reno, Nevada, next week, but the proceedings and case filings are shrouded in secrecy. Alicia L. Lerud, an administrator at the Second Judicial District Court, confirmed to NBC News that the Murdoch matter is under seal and “confidential pursuant to court order.” (Reno probate court frequently deals with family trusts and estates.)

In late July, however, The New York Times published an article based on a copy of a sealed court document laying out some of the case’s key issues. NBC News has not independently seen the document or confirmed its authenticity. Gary A. Bornstein, the litigator representing the three siblings, and Adam Streisand, the lawyer representing their father, did not respond to requests for comment from NBC News.

Murdoch is one of the most powerful and influential media titans of the modern age. He built a small Australian newspaper business into a mighty collection of broadcast and cable television properties. The crown jewel remains Fox News, a pillar of the American conservative movement and home to high-profile opinion hosts who staunchly defend former President Donald Trump.

The palace intrigue inside the Murdoch family has often lent itself to breathless public fascination, inspiring the HBO series “Succession” and behind-the-scenes books.

The family is divided partly by differences in political opinion — and how those beliefs could shape the future of its sprawling media empire. Lachlan Murdoch, who took over as chairman of Fox Corp. and News Corp. last September, tends to be more aligned with his father’s conservative worldview. 

James Murdoch, Elisabeth Murdoch and Prudence Murdoch are believed to be more politically moderate. James Murdoch has endorsed Vice President Kamala Harris’ presidential candidacy, and Federal Election Commission records show he has donated hundreds of thousands of dollars to Democratic congressional candidates and Democratic state parties.

The Times, citing the court document, reported that the elder Murdoch believes the “lack of consensus” among the four children “would impact the strategic direction at both companies including a potential reorientation of editorial policy and content.” The mogul filed a petition to amend the trust as he seeks to “consolidate decision-making power in Lachlan’s hands and give him permanent, exclusive control.”

Nevada’s probate commissioner found in June that Murdoch could change the irrevocable trust if the wealthy patriarch was able to demonstrate he was acting in good faith, for the sole benefit of his heirs, according to a copy of the 48-page decision cited by The Times. (Murdoch has two other children, both in their early 20s, from his third of five marriages.)

In the event Lachlan Murdoch cements control of the corporate properties, Fox News’ opinion programming will likely continue to be solidly conservative and a major influence on Republican politics. 

Fox News has been tightly linked with Trump in recent years. The company was sued by Dominion Voting Systems for airing baseless claims of vote-rigging after the 2020 election. The two sides ultimately settled for $787.5 million, heading off a jury trial.

“Rupert Murdoch has always been good at harmonizing his business interests and his ideological goals, and he seems to view Lachlan as the one sibling who can thread that needle,” said Reece Peck, an associate professor of media culture at the City University of New York-College of Staten Island and the author of “Fox Populism: Branding Conservatism as Working Class.”

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