Trouble For The Murdoch Family Trust That Controls Conservative Fox News
BEVERLY HILLS, CA - FEBRUARY 24: Rupert Murdoch (L) and Jerry Hall attend the 2019 Vanity Fair Oscar Party hosted by Radhika Jones at Wallis Annenberg Center for the Performing Arts on February 24, 2019 in Beverly Hills, California. (Photo by Dia Dipasupil/Getty Images)

The ongoing Murdoch family trust court case in Nevada is one of the most high-profile legal battles in recent media history, with implications that could ripple across the media and political landscape. This case, centered around the future control of News Corp and Fox News, is taking place behind closed doors in a Nevada probate court. Rupert Murdoch, the media mogul behind Fox News and News Corp, is facing opposition from some of his children over changes he wants to make to the irrevocable family trust. The court case is raising questions about succession and control over the powerful media empire. The outcome could shift the balance of power within the family and have a profound impact on the direction of Fox News.

The Murdoch family trust, established decades ago, is a cornerstone of the Murdoch empire. It controls the family’s 40% stake in News Corp and Fox news, making it the key to succession. After Rupert Murdoch’s divorce from his second wife, Anna Murdoch Mann, the trust was set up in such a way that his four oldest children—Lachlan, James, Elisabeth, and Prudence—would each have equal voting power upon his death. This setup ensured that the controlling shares would be divided equally, ostensibly to avoid family conflict.

However, things took a sharp turn in late 2023 when Rupert Murdoch secretly moved to make changes to the trust, tipping the balance in favor of his eldest son, Lachlan Murdoch, who works closely with Rupert Murdoch at News Corp and Fox News, and is also aligned politically with his Republican leaning father. This has led to the current legal dispute, as the other siblings – James, Elisabeth, and Prudence, who all lean toward the Democratic side of the political spectrum – felt sidelined and challenged the changes in a Nevada court. Lachlan Murdoch, who has been more aligned with the conservative direction of Fox News, stands to gain significant control if the court rules in his favor, while his siblings have voiced concerns about Fox News’ populist direction under his leadership.

Lachlan Murdoch has been serving as the executive chairman and CEO of Fox Corporation, maintaining the company’s hard-right stance. James Murdoch, on the other hand, has distanced himself from the family’s media empire and has been a vocal critic of Fox News, particularly over its climate change coverage and political stance. Elisabeth and Prudence have largely stayed out of the media spotlight but are reportedly aligned with James in this legal battle.

Thoroughly confused yet? Let me help sort things out.

An irrevocable family trust, like the one the Murdochs are fighting over, is designed to be permanent. Once established, the terms of the trust can’t  “easily” be changed without the approval of all parties or a court order. These types of trusts are favored by wealthy families because they provide asset protection, tax benefits, and a structured way to pass on wealth to future generations. They can also help shield assets from creditors and ensure privacy, which is especially important for high-profile families like the Murdochs.

Nevada, where this case is being heard, is a popular state for setting up trusts because of its strong privacy laws and favorable tax treatment. The state does not levy income or estate taxes, making it an attractive jurisdiction for wealthy individuals and families. Additionally, Nevada law provides strong protections against challenges to trusts, which is why many family dynasties, including the Murdochs, choose to establish their trusts there.

The outcome of this court case could have significant repercussions for Fox News and the broader media landscape. If the court allows Rupert Murdoch to make changes favoring Lachlan, the eldest son will likely continue steering Fox News on its current right-wing path. Lachlan has long been seen as more conservative than his siblings and has overseen Fox News as it has leaned into its populist and sometimes controversial programming. This could solidify Fox’s position as a major voice in conservative media.

On the other hand, if the court sides with James, Elisabeth, and Prudence, Fox News could see a shift away from its current stance. James Murdoch, in particular, has criticized Fox News’ direction and has distanced himself from its hard-right commentary. A shift in leadership could lead to significant changes in programming, potentially bringing Fox News closer to the political center. Such a change could alter the media landscape by weakening Fox News’ influence on conservative politics in the U.S., which could, in turn, impact political discourse leading up to future elections.

The legal battle has already brought to light the deep divisions within the Murdoch family and the potential for a power struggle that could reshape the media empire Rupert Murdoch spent decades building.

At its core, the Murdoch family trust case is about control – control of one of the most influential media empires in the world and its future direction. Whether Lachlan retains his grip on Fox News or his siblings succeed in diluting his power will have far-reaching consequences not just for the Murdoch family but for the media and political landscape as well.

As the court deliberates, the stakes couldn’t be higher. Fox News has been a powerful force in American politics, and any shift in its leadership could impact how news is presented to millions of viewers. The Murdoch family saga is a real-life drama that will continue to unfold, and its outcome will likely shape the future of media and politics in the U.S. for years to come.
The Nevada court case is expected to be long and contentious, but its resolution could bring clarity to the future of Fox News and News Corp, determining whether they remain under conservative leadership or shift in a new direction. Regardless of the outcome, this legal battle will likely be studied for years as an example of how dynastic family struggles can have profound implications for the business world and beyond.

Murdoch family succession battle will remain confidential, judge rules