Rupert Murdoch loses Succession-style legal battle to change family trust
The court commissioner called their efforts a “carefully crafted charade” designed to “permanently cement” Lachlan’s control, as ITV News' reporter Ellie Pitt reports
Rupert Murdoch has failed in his bid to put the power of his media companies in the hands of his eldest son, according to US reports.
A court commissioner concluded that Murdoch, 93, and his son, Lachlan Murdoch, who is the head of Fox News and News Corp, had acted in "bad faith" in their attempt to amend his irrevocable family trust, according to the New York Times.
The trust gives Murdoch's four eldest children equal voting power after his death.
Under the proposed change, 53-year-old Lachlan – who more closely aligns with his father’s conservative views – would consolidate all the power.
The court commissioner called their efforts a “carefully crafted charade” designed to “permanently cement” Lachlan’s control.
The other three eldest children, Prudence, Elisabeth and James, objected to the change and contested it in Nevada court.
The conflict over the family trust is not thought to be centred around money, as Murdoch is not seeking to diminish any of his children’s financial inheritance.
Instead, the move would have changed the voting power of his less conservative children and is thought to have cemented a right-wing agenda across his media empire.
Lawyer Adam Streisand, acting on behalf of Murdoch, told the newspaper they planned to appeal the decision.
Prudence, Elisabeth and James, said in a statement given to the Times: “We welcome Commissioner Gorman’s decision and hope that we can move beyond this litigation to focus on strengthening and rebuilding relationships among all family members.”
The legal case reportedly began when the Murdoch children watched an episode of the HBO drama Succession, which sees the patriarch, played by Scottish actor Brian Cox, leave family and business in chaos after his death.
The episode led Elisabeth’s representative to the trust to write a “‘Succession’ memo” to prevent a repeat in real life, according to the New York Times.
Murdoch established the family trust in 2006, which sees him retain control over the business until his death when voting shares will be distributed equally among his four oldest children.
The media titan also has two younger children, Grace and Chloe, who do not have any voting rights under the agreement but have an equal financial stake.
Representatives for Murdoch have been contacted by the PA News Agency.
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