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Rupert Murdoch loses legal bid to overhaul family trust

The move would have changed the voting power of his less conservative children over his media empire.

Ellie Iorizzo
Monday 09 December 2024 20:08 EST
Rupert Murdoch loses legal bid to overhaul family trust (Victoria Jones/PA)
Rupert Murdoch loses legal bid to overhaul family trust (Victoria Jones/PA) (PA Archive)

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Rupert Murdoch has failed in his attempt to give his eldest son control of his media empire, according to US reports.

The court case saw the 93-year-old media mogul reportedly blocked in his bid to change his family trust, which gives his four oldest children equal voting power after his death.

A court commissioner ruled that Mr Murdoch and his son Lachlan, who is the head of Fox News and News Corp, had acted in “bad faith” and called their efforts a “carefully crafted charade” designed to “permanently cement” Lachlan’s control, according to the New York Times.

The conflict over the family trust is not thought to be centred around money, as Mr Murdoch is not seeking to diminish any of his children’s financial inheritance.

Instead, the move would have changed the voting power of his less conservative children and is thought to have cemented a right-wing agenda across his media empire.

Lawyer Adam Streisand, acting on behalf of Mr Murdoch, told the newspaper they planned to appeal the decision.

Prudence, Elisabeth and James, said in a statement given to the Times: “We welcome Commissioner Gorman’s decision and hope that we can move beyond this litigation to focus on strengthening and rebuilding relationships among all family members.”

The legal case reportedly began when the Murdoch children watched an episode of HBO drama Succession, which sees the patriarch, played by Scottish actor Brian Cox, leave family and business in chaos after his death.

The episode led Elisabeth’s representative to the trust to write a “‘Succession’ memo” to prevent a repeat in real life, according to the New York Times.

Mr Murdoch established the family trust in 2006, which sees him retain control over the business until his death when voting shares will be distributed equally among his four oldest children.

The media titan also has two younger children, Grace and Chloe, who do not have any voting rights under the agreement but have an equal financial stake.

The case, based on a sealed court document obtained by the Times, has opened questions over the future of Mr Murdoch’s media organisation.

Representatives for Mr Murdoch have been contacted for comment.

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