The agreement, announced by News Corp on Monday, will lead to eldest son Lachlan Murdoch taking over a significant media portfolio, including Fox News, The Wall Street Journal, The New York Post, and The Times.
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The settlement ensures that Murdoch’s media holdings will maintain a conservative orientation long after the 94-year-old media magnate’s death.
Under the terms, Lachlan, known for aligning with his father’s conservative ideologies, and his younger sisters, Grace and Chloe, will benefit from a new family trust that will control Fox Corporation and News Corp until 2050.
Voting authority will exclusively rest with Lachlan, who has been the chairman of News Corp and CEO of Fox since his father’s retirement in 2023.
His three older siblings, James, Elizabeth, and Prudence, are to give up their stakes in the current family trust, receiving an equal share from the equity sale.
These conditions include a long-term standstill clause preventing them from acquiring shares in News Corp and Fox Corporation or undertaking certain actions with regards to the companies.
The estimated payout for the three siblings is around $3.3 billion.
“News Corp’s board of directors welcomes these developments and believes that the leadership, vision, and management under our Chair, Lachlan Murdoch, are crucial for steering the Company’s future strategy and success,” stated News Corp in an official communique.
The conclusion of this saga, reminiscent of the plot of HBO’s Succession, has intrigued both political and media circles.
“Rupert Murdoch has established a reputation for tenacity in securing what he desires, and it is becoming evident that his preference for Lachlan Murdoch to rule Fox Corp and News Corp is becoming reality,” declared Lynne Vincent, an associate professor of management at Syracuse University’s Whitman School of Management, speaking with Al Jazeera.
“Lachlan Murdoch’s take-over of the media assets will ensure continuity in operation at these platforms,” Vincent remarked.
“Given what we know about Lachlan Murdoch’s beliefs and values, they closely resemble Rupert Murdoch’s,” she further remarked.
“From an organizational viewpoint, this transition provides stability for Fox Corp and News Corp, which could appeal to some stakeholders.”
The legal struggle over Rupert Murdoch’s succession plans commenced in 2023 when the Australian-born tycoon aimed to restructure the family trust to confer complete control of his companies to Lachlan upon his passing.
James, Elizabeth, and Prudence, who were set to inherit equal command of the companies alongside Lachlan, contested their father’s intentions through legal action.
In December, a Nevada probate court dismissed the effort to alter the trust, labeling it as a “deliberately orchestrated facade” intended to “permanently entrench” Lachlan Murdoch’s power.
