Murdoch Settlement Stunner: Lachlan’s Status Reaffirmed As James, Elisabeth And Prudence Cut Ties With Family
In a seismic development in the decades-long media dynasty presided over by Rupert Murdoch, a settlement has been reached in a Nevada family trust legal fight.
The settlement will see James and Elisabeth Murdoch and Prudence MacLeod formally cut ties with the family and will surrender all their equity in News Corp and Fox Corp. They had objected to several aspects of the strategic path taken by Rupert Murdoch, now 94. In part, James and Elizabeth Murdoch, who blazed their own separate trails in the media business, had concerns about Fox News and the close affiliation of the news network with the family.
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Lachlan Murdoch, who currently runs Fox Corp. as CEO, has been reaffirmed as the heir apparent in the settlement. Grace Murdoch and Chloe Murdoch, who are the daughters of Rupert Murdoch and his ex-wife, Wendi, are joining Lachlan Murdoch as members of a new trust. His victory over his siblings will, of course, draw Succession comparisons galore.
However, with leaking of sealed proceedings material deepening family divisions, indicative of the murky Murdoch machinations is how the family trust matter was already on appeal as of earlier this year. A protracted battle in and out of the Nevada courts.
“People forget how many children Rupert Murdoch actually has and how those children have mothers,” a source close to events told Deadline today after news of the new trust status broke. Murdoch’s youngest daughters Chole and Grace from his 1999 to 2013 marriage to Wendi Dang, never had voting rights under the previous family trust structure. Yet, from what sources tell Deadline, their economic interests played a vital role in the resolution of the family dispute and the multi-billion-dollar buyout of James, Elizabeth and Prudence.
According to a statement from Rupert Murdoch’s News Corp and Fox Corp., the settlement entails the “termination” of all litigation. James and Elizabeth Murdoch and Prudence MacLeod will receive cash funded by the sale of 14.2 million shares of News Corp Class B common stock and about 16.9 million shares of Fox Corp. shares.
James Murdoch earlier this year granted a rare interview to the New York Times as the legal saga was playing out in Nevada. It always seemed to be an uphill battle for the ultimate chess master, Rupert Murdoch, to be outmaneuvered. Yet the scenario of James Murdoch banding together with his siblings to turn Fox News into a progressive network and otherwise “de-Fox-ify” the legacy assets built up by Rupert Murdoch over a decades-long career as a media titan seemed at least somewhat plausible.
