Family of Murdoch reaches resolution over governance of media possessions

Murdoch Family Reaches Settlement in Succession Dispute

Rupert Murdoch's children have reached a settlement in the legal dispute over control of News Corp and Fox Corp. The complicated structure of the trust reflects the colorful familial relationships that shaped Murdoch's life as he built the multibillion-dollar empire.

The original trust, the result of a deal with Murdoch's second wife, mother of Lachlan, Elisabeth, and James, ensured her offspring would not be disenfranchised by children Murdoch had with his third wife, Wendi Deng. However, the new deal establishes a trust to replace the Murdoch Family Trust.

Under the new agreement, Lachlan Murdoch, Rupert's politically conservative son, will control all the most vote-eligible shares of News Corp and Fox Corp. Voting control for these shares will rest solely with Lachlan Murdoch through his appointed managing director. The agreement establishes LGC Holdco, which will own all shares of News Corp and Fox Corp previously held by the original family trust.

Prudence MacLeod, Elisabeth Murdoch, and James Murdoch, who have had little involvement in the family business, will receive cash based on equity sales and cease to have holdings in either media company. Murdoch's daughters with Deng, Grace and Chloe, will be beneficiaries of the new trusts, along with Lachlan.

The value of the settlement is reported to be $3.3 billion, to be split evenly among the three siblings. The departing beneficiaries will cease to be beneficiaries in any trust holding shares in News Corp or Fox Corporation. New trusts will be established for the benefit of Lachlan Murdoch, Grace Murdoch, and Chloe Murdoch.

The media holdings, including Fox News, The Wall Street Journal, and various British and Australian media, were the inspiration for the hit TV series "Succession." The Murdoch empire has transformed tabloid newspapers, cable TV, and satellite broadcasting over the last few decades. However, the empire has faced accusations of stoking populism across the English-speaking world. Brexit in Britain and the rise of Donald Trump in the United States are credited at least partly to Murdoch and his outlets.

James and Elisabeth Murdoch are known as more politically centrist, while Lachlan has been associated with more conservative views. The media holdings under Lachlan's control will undoubtedly shape the future of the Murdoch empire. The settlement resolves litigation over Murdoch's effort to install Lachlan as successor. The Nevada court had blocked Murdoch's effort, but the new agreement has put an end to the legal dispute.

The complicated family dynamics and the power struggle for control of the Murdoch empire have been a subject of interest and speculation for many years. With the new agreement in place, the future of the Murdoch empire is set to be shaped by Lachlan Murdoch.