Lachlan Murdoch wins control over family trust after succession battle
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The news: The Murdoch family has reached a settlement to end years of litigation over the Murdoch Family Trust, with Lachlan Murdoch set to take control of a new trust that will hold sizable stakes in Fox Corp and News Corp.
The numbers: The agreement, announced Monday, is valued at about USD3.3 billion ($5.01 billion), according to the New York Times, and will see Prudence MacLeod, Elisabeth Murdoch and James Murdoch cease to be beneficiaries of the existing trust. They will receive proceeds from the sale of about 16.9 million Fox Class B shares and about 14.2 million News Corp Class B shares, with each sibling getting about USD1.1 billion, the Times said citing an unnamed person with knowledge of the negotiations.
A family holding company controlled by Lachlan, Grace and Chloe Murdoch will own about 36% of Fox’s Class B stock and 33% of News Corp’s. Fox said the settlement results in the termination of all litigation related to the Murdoch Family Trust.
The context: It follows a decades-long succession battle over control of the trust, which owns News Corp and Fox Corporation.
Rupert Murdoch, 94, sought to preserve his chosen successor’s leadership after earlier failed attempts to change the family trust, which originally gave equal voting rights to his four oldest children. The succession fight followed his divorce settlement with his second wife, Anna Mann, which required equal control among the four.
According to the New York Times, Rupert and Lachlan attempted to change the family trust under a plan called ‘Project Family Harmony,’ but in 2024 Nevada probate commissioner Edmund Gorman ruled against them, describing the effort as ‘a carefully crafted charade’ to ‘permanently cement Lachlan Murdoch’s’ control of the empire.
The Times reported that as the case continued on appeal, the parties returned to negotiations that ultimately led to the buyout.
The sources: News Corporation media relese, New York Times
