Title: Murdoch Family’s Succession Battle Looms Over Future of Media Empire
Subtitle: Potential Power Struggles within Murdoch Family Threaten Future of Fox News
Date: September 22, 2023
When Lachlan Murdoch was announced as the sole chairman of News Corp and Fox Corp, the immediate question of who would run the sprawling media empire was answered. However, another potential power play looms in the future, as revealed by the Murdoch Family Trust.
The trust, based in Reno, Nevada, outlines a scenario in which a potential takeover could occur upon Rupert Murdoch’s death. As the elder Murdoch controls News Corp and Fox Corp through a roughly 40% stake in voting shares of each company, a transfer of voting shares to his four oldest children could lead to a battle over the future of the companies.
While Lachlan Murdoch currently runs Fox Corp and holds the position of sole chair of News Corp, three of the children could potentially out-vote a fourth, creating tension and uncertainty over the direction of the media empire. This battle could foreground the future of Fox News, one of the most influential and polarizing properties within the Murdoch empire, particularly among Republicans.
The political views of the Murdoch siblings also come into play. While Lachlan Murdoch remains silent on his political stance, James Murdoch, in a 2020 statement to The Daily Beast, criticized News Corp and Fox Corp for downplaying the impact of climate change. James later resigned from News Corp’s board of directors, citing disagreements over editorial content and strategic decisions. This has fueled speculation about tension between the brothers over the direction of Fox News and other family-controlled media outlets.
In a 2021 interview with the Financial Times, James Murdoch made comments about the January 6 U.S. Capitol siege, seemingly criticizing outlets like Fox News. He stated that “those outlets that propagate lies to their audience have unleashed insidious and uncontrollable forces that will be with us for years.”
The Murdoch Family Trust holds eight votes, with four controlled by Rupert Murdoch and the remaining four controlled by his four oldest children. Murdoch’s two youngest daughters do not have voting rights in the trust.
According to experts, upon succession, the older children will equally inherit Murdoch’s voting shares in the trust. In addition to shares in News Corp and Fox Corp, the trust also includes assets such as the Cruden family farm near Melbourne and Murdoch’s art collection.
However, this succession scenario is not an immediate concern. Analysts believe it will play out in the future rather than the present.
The future of the Murdoch media empire hangs in the balance, as potential power struggles and differing political views within the family threaten the stability and direction of the company. The battle over the future of Fox News, combined with tensions between the siblings, adds an additional layer of uncertainty to the media landscape.
Disclaimer: This article is based on publicly available information and does not involve any direct interviews or statements from the mentioned individuals.
Reporting by Helen Coster in New York and Dawn Chmielewski in Los Angeles; Editing by Stephen Coates and Marguerita Choy