Nevada Court Rejects Rupert Murdoch’s Bid to Alter Family Trust

A Nevada court commissioner has denied Rupert Murdoch’s attempt to modify a family trust, which would have granted control of his media empire to his eldest son, concluding a dispute likened to a real-life “Succession” battle. The legal dispute involved the 93-year-old Mr. Murdoch and three of his children, centering on who would assume control of News Corp and Fox News upon his passing. Reports indicate that Mr. Murdoch sought to alter a family trust established in 1999, aiming to enable his son Lachlan to assume control unimpeded by his siblings, Prudence, Elisabeth, and James. The New York Times reported that a Nevada commissioner determined Mr. Murdoch and Lachlan had engaged in “bad faith” and described their actions as a “carefully crafted charade.” A spokesperson representing Prudence, Elisabeth, and James issued a statement, saying: “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.” Adam Streisand, who serves as Mr. Murdoch’s lawyer, informed the New York Times that they were disappointed by the outcome and intended to appeal the ruling. A spokesperson for Mr. Murdoch chose not to comment when contacted by the BBC. Mr. Streisand did not provide an immediate response to inquiries. The renowned family served as one of the inspirations for the highly popular television series “Succession,” a topic the Murdochs have consistently declined to address. However, a New York Times report, citing a copy of the sealed court ruling, indicated that Mr. Murdoch’s children began discussing their father’s potential death and the subsequent handling of affairs following an episode of the HBO series in which “the patriarch of the family dies, leaving his family and business in chaos.” Reports state that this particular episode prompted Elisabeth’s representative to the trust to draft a “‘Succession’ memo” aimed at averting a similar real-life scenario. The proceedings for this case occurred confidentially in Nevada, a state known for providing highly private legal environments for issues such as family trust disagreements. Nevada possesses a “close on demand” statute, which permits parties in specific sensitive cases to request that court proceedings be sealed from public view, thereby guaranteeing full privacy. Mr. Murdoch, who has been married five times, is also the father of two younger children, Grace and Chloe, neither of whom possesses voting rights under the terms of the trust agreement. The Times reported that the case was initiated following Mr. Murdoch’s decision to modify the trust due to concerns regarding a “lack of consensus” among his children. Lachlan is perceived as more conservative than his siblings and is believed to be inclined to uphold the legacy of his media brands. Beginning in the 1960s, Mr. Murdoch established a global media conglomerate wielding significant political and public influence. His two primary companies are News Corporation, which holds ownership of newspapers such as the Times and the Sun in the UK and the Wall Street Journal in the US, and Fox, which is responsible for broadcasting Fox News. Journalist Andrew Neil stated in the 2020 BBC documentary “The Rise of the Murdoch Dynasty” that Mr. Murdoch had been grooming his two sons to succeed him since their teenage years. The former Sunday Times editor commented, “Family has always been very important to Rupert Murdoch, particularly from the point of view of forming a dynasty.” The Murdoch Family Trust, established in 1999 and owning the media companies, was intended to largely finalize the succession arrangements. This arrangement resulted in Mr. Murdoch assigning various roles within his companies to his eldest children. The trust grants the family eight votes, which can be exercised to influence the boards of News Corp and Fox News. Mr. Murdoch presently holds control over four of these votes, while each of his eldest children manages one vote. According to the trust agreement, upon Mr. Murdoch’s death, his votes were to be distributed equally among his four eldest children. Nevertheless, diverging opinions and political perspectives reportedly contributed to a family division. The dispute concerning modifications to the trust centered not on financial matters, but on authority and governance over the future of the Murdoch empire. The commissioner’s decision is not conclusive; the court filing serves as a suggested resolution, but a district judge will still review the matter and has the option to issue a different ruling. The judge’s decision, which will not be made public, could take several weeks or months. Additional reporting was provided by Michelle Fleury and Charlotte Edwards.