The destiny of Fox News, a significant force in television and conservative politics, is expected to be decided by a probate court official in Reno, Nevada. The trial, scheduled to begin Monday, addresses the broader implications for Rupert Murdoch’s expansive media empire, which spans the Wall Street Journal, the Times of London, the Australian, and the New York Post.
Murdoch, 93, has proposed an amendment to his trust to transfer full control to his eldest son, Lachlan, who currently oversees their businesses. This move is contested by Lachlan’s three elder siblings who stand to share control after their father’s passing. Murdoch’s two youngest children from his third marriage will share equally in the financial benefits but will not have control.
The court battle, which draws parallels to Shakespearean drama and sometimes appears petty, encapsulates themes of money, power, and the direction of Fox News, whether it should continue its partisan, right-wing stance or adopt a more centrist approach. Lachlan’s siblings are less supportive of the network’s hard-right policy, notably his brother James, who has publicly criticized the network’s populist, pro-Trump bias.
Joe Peyronnin, a former network news executive and early president of Fox News, argues that shifting Fox News towards a centrist format akin to CNN would be detrimental to its identity, viewership, and revenue.
Murdoch’s petition to alter the trust’s terms, initially reported by the New York Times and corroborated by various sources, remains confidential under a ruling by the probate commissioner, who has also denied media requests to make the proceedings public.
The legal dispute emanates from an agreement Murdoch made several years ago, setting up an irrevocable family trust to preclude any disputes over his assets following his split from his second wife, Anna Torv Murdoch Mann. In exchange for a $110 million payout, Murdoch Mann relinquished her claim to a portion of Murdoch’s media assets.
Rupert Murdoch believes that Lachlan will continue guiding the empire effectively, citing how Lachlan prevailed in a corporate rivalry with James and now leads Fox Corp. and News Corp. Despite fluctuations in the stock prices of both arms of the empire due to scandals and legal troubles, Murdoch champions Lachlan’s leadership.
Murdoch’s efforts to maintain the network’s right-leaning stance are anchored in his belief that altering this could weaken its appeal to its core audience. This perspective underpins the ongoing legal confrontation.
The Wall Street Journal recently reported that Murdoch requested more than $100 million from each of his four eldest children after selling a significant portion of Fox’s properties to Disney. While Lachlan, Prudence, and Elisabeth complied, James refused.
Murdoch’s children have shifted in and out of his favor over the years, with various familial alliances and rivalries shaping their current stances. James and his wife Kathryn have emerged as liberal philanthropists, advocating for changes in Fox’s political positioning and transparency in the family trust’s leadership.
The current legal proceedings in Reno will ultimately determine if Rupert Murdoch can amend the trust to ensure a clear and unified corporate strategy posthumously. The probate commissioner, Edmund J. Gorman Jr., must evaluate whether the proposed changes genuinely benefit all heirs, as Murdoch asserts.
Suggested settlements have repeatedly failed, posing challenges for Lachlan to buy out his siblings’ stakes. The resolution of this familial and corporate power struggle will significantly impact the future leadership and direction of Murdoch’s media empire.
