Rupert Murdoch’s family has finalized a significant deal over the future direction of his massive media empire. This decision takes on new significance in light of his passing. This compact perpetuates Fox News’ dangerous legacy without end. It smooths concerns over a hypothetical future shift in its editorial direction.
Rupert’s eldest son Lachlan Murdoch will continue to wield absolute power over the family’s media empire. His three older siblings—Prudence MacLeod, Elisabeth Murdoch and James Murdoch—are in agreement. They noted in the filing that they will liquidate any personal interests in Fox within the next six months. This provision is intended to counter their ability to control the network. They will encounter a more permanent prohibition on even obtaining shares of both Fox and News Corp. Moreover, they are banned from doing anything with respect to these companies.
While this new deal was somewhat comforting, stakeholders were left with a sense of unease. They concerned that Prudence, Elisabeth, and James would attempt to redirect Fox News away from its creation and mission post their father’s death. In practice, they have not acted on Rupert Murdoch’s conservative vision, leading to great skepticism about their real impact on the network.
The deal features the creation of a new public trust that will rule over the sprawling media empire until 2050. This development comes on the heels of an effort by Rupert and Lachlan Murdoch to revise the terms of an existing trust. The old will gave Rupert’s four oldest children equal control over how to run his media assets after his death.
In a twist of fate, Prudence, Elisabeth, and James had tried to prevent these alterations from taking effect through the courts. They won an initial ruling in a Nevada probate court, which underscored their intent to challenge any alterations that might undermine their positions. The contentious case attracted extensive media coverage and saw lawyers on both sides, including former Trump Administration Attorney General William Barr.
Aside from the money, as part of this deal Prudence, Elisabeth, and James have agreed to settle their claims to control over Fox News. In exchange, they will get stock worth an estimated $3.3 billion. One Nevada probate commissioner’s assessment of Rupert and Lachlan Murdoch’s first attempt to change the trust was that it was a “carefully crafted charade.” This strategic move, at least in part, was to further entrench Lachlan’s control over the family business.
