Rupert Murdoch loses bid to change control of family trust
The 93-year-old plans to appeal a probate recommendation that blocks him from handing future control of his media empire to oldest son, Lachlan.
A Nevada probate commissioner rejected Rupert Murdoch’s attempt to give control of his media assets to his oldest son when he dies, rather than dividing it among four children, according to people familiar with the matter.
Murdoch, 93 years old, had sought to amend a trust holding the family’s assets, which include roughly 40% voting stakes in Fox News parent Fox Corp.and Wall Street Journal owner News Corp. The change would have passed control of the trust after Murdoch’s death to his son Lachlan, a move the media mogul said was in the best interests of all the children.
Three of his other children, James, Elisabeth and Prudence, who stood to lose voting power, opposed the change.
Rupert Murdoch can ask a probate judge to review the commissioner’s recommendation. If a request for review isn’t filed, a probate judge will uphold the commissioner’s recommendation.
A representative for James, Elisabeth and Prudence said in a statement that the siblings welcome the decision, “and hope that we can move beyond this litigation to focus on strengthening and rebuilding relationships among all family members.”
“We are disappointed in the Commissioner’s ruling and, of course, plan to appeal,” said Adam Streisand, an attorney for Rupert Murdoch.
The commissioner’s decision was reported earlier by the New York Times. If the ruling stands, the status quo will remain in effect. When Murdoch dies, the four siblings would share control of the family holdings, which include cable news, sports media, streaming, newspapers, book publishing and real estate. Murdoch has two other children, Grace and Chloe, who are beneficiaries of the trust but don’t have voting power.
For Rupert Murdoch, handing control to Lachlan would ensure stability at the businesses and avoid a confusing ownership structure, his associates have said. Under Murdoch’s vision, his oldest son would have the same authority that his father has held for years, and other shareholders would largely have to accept whatever his plans are for the companies.
The Murdoch family feud over the future of the media empire has played out internally for years, with disagreements over business strategy, politics and succession plans. The family discord was dragged into public view when the Murdochs headed to court in Reno this fall.
The family dispute was hashed out in a secret September trial in Reno probate court because the family trust is based in Nevada. Filings in the case, named the “Doe 1 Trust” in the court system’s website, have been kept under seal with little information released publicly.
The state has attracted wealthy families for its trust laws that offer stronger financial protections and privacy compared with other states.
The Wall Street Journal
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