Rupert Murdoch Loses Bid to Alter Family Trust in 'Succession' Battle
Rupert Murdoch Loses Bid to Alter Family Trust in 'Succession' Battle.
A real-life drama reminiscent of "Succession" has unfolded as a Nevada court commissioner shot down Rupert Murdoch's attempt to tweak a family trust, which would have handed control of his media empire to his eldest son.
The 93-year-old media mogul found himself in a legal tussle with three of his kids over who would take the reins of News Corp and Fox News after his passing.
Reports suggest that Murdoch aimed to modify a family trust set up in 1999, hoping to give his son Lachlan the upper hand without his siblings—Prudence, Elisabeth, and James—getting in the way.
However, the Nevada commissioner ruled that both Murdoch and Lachlan acted in "bad faith," labeling their actions as a "carefully crafted charade," according to the New York Times.
A representative for Prudence, Elisabeth, and James shared their thoughts, saying they appreciate Commissioner Gorman's decision and are eager to put the legal battles behind them to focus on mending and enhancing family ties.
Adam Streisand, the attorney for Mr. Murdoch, expressed disappointment to the New York Times and mentioned plans to appeal the decision.
This well-known family served as a key inspiration for the hit TV show Succession, a topic the Murdochs have consistently avoided discussing.
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The New York Times report, which references a copy of the sealed court ruling, reveals that the billionaire's kids began talking about their dad's death and how to deal with it after watching an episode of the HBO series where "the family patriarch passes away, throwing everything into disarray."
Elisabeth's rep for the trust ended up drafting a "Succession memo" to try and stop this situation from becoming a reality, according to reports.
The whole case has been unfolding behind closed doors in Nevada, which is known for its super confidential legal environment, especially for family trust issues.
They have a "close on demand" law that lets those involved in sensitive cases ask for court proceedings to be kept private, ensuring everything stays under wraps.
Mr. Murdoch, who's been married five times, also has two younger kids, Grace and Chloe, who don’t have any voting rights in the trust agreement.
Mr. Murdoch kicked off the case after he got concerned about a "lack of consensus" among his kids, according to the Times.
Lachan is seen as more traditional compared to his siblings and aims to maintain the legacy of his media empire.
Since the 1960s, Mr. Murdoch has been building a massive global media powerhouse with significant political and public sway.
His two main companies are News Corporation, which owns newspapers like the Times and the Sun in the UK and the Wall Street Journal in the US, and Fox, known for broadcasting Fox News.
He had been grooming his two sons to take over the family business since they were teenagers, as journalist Andrew Neil mentioned in the 2020 BBC documentary The Rise of the Murdoch Dynasty.
"Family has always been very important to Rupert Murdoch, particularly from the point of view of forming a dynasty," the former Sunday Times editor said.
In 1999, the Murdoch Family Trust, which oversees the media companies, was meant to finalize the succession plans. This resulted in Mr. Murdoch assigning various roles to his oldest kids within his businesses.
The trust allows the family to have eight votes, giving them a voice on the boards of News Corp and Fox News. Right now, Mr. Murdoch holds four of those votes, while each of his eldest children has one.
According to the trust agreement, when Mr. Murdoch passes away, his votes will be divided equally among his four oldest kids.
However, differing opinions and political beliefs reportedly caused some tension within the family. The dispute over the trust changes isn't really about money; it's more about who gets to control the future of the Murdoch empire.
The commissioner's decision isn't the final word. The court filing serves as a suggested solution, but a district judge will still review it and might come to a different conclusion.
It could take the judge weeks or even months to make a ruling, and that decision won't be made public.
Despite the legal drama, the Murdoch family's ability to navigate complex challenges reflects their resilience and commitment to the legacy of their media empire. While the court ruling is a significant setback for Rupert Murdoch’s plans, it underscores the importance of transparency and fairness in handling such a powerful family trust.
The Murdoch children, despite their differences, continue to focus on their roles within the empire and aim to preserve their father’s influence. As the case progresses, there’s hope that the family will ultimately find a resolution that strengthens their ties and ensures the future success of their businesses.
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