In Reno, Nevada, a probate court has commenced a closed-door review of evidence in a case that could determine the future leadership of Rupert Murdoch's vast media empire. The 93-year-old media mogul arrived at the courthouse on Monday, September 16, 2024, for hearings scheduled to continue through the following Tuesday.
The case centers on Murdoch's attempt to modify the terms of an irrevocable family trust established in 2004. This move, initiated in 2023, aims to ensure that his eldest son, Lachlan Murdoch, maintains control over the family's extensive portfolio of newspapers and television networks, including The Wall Street Journal and Fox News Channel.
The trust, originally designed to grant equal control to Murdoch's four oldest children upon his death, has become a point of contention within the family. Rupert Murdoch argues that altering the trust is necessary to preserve the commercial value of his businesses for all heirs and maintain the conservative editorial stance of his media outlets.
This move has faced opposition from Murdoch's other three children named as beneficiaries: James, Elisabeth, and Prudence. The siblings have united in an effort to prevent their father from revising the trust's terms.
"Rupert Murdoch may amend the trust if he can demonstrate that he is acting in good faith and for the sole benefit of his heirs."
The court's decision to keep the hearings closed and most documents sealed has been met with resistance from various news organizations, including The Associated Press, which have sought access to the proceedings.
Lachlan Murdoch, born on September 8, 1971, succeeded his father as chairman of News Corp in November 2023, following Rupert Murdoch's decision to step down from leadership roles at both Fox News' parent company and News Corp media holdings in the fall of that year. Lachlan also serves as executive officer at Fox Corp., which encompasses Fox News, Fox broadcast and sports networks, and local TV stations.
The Murdoch media empire, with an estimated family net worth of $17 billion as of 2024, has played a significant role in shaping modern American politics. It spans six countries: the United States, United Kingdom, Australia, New Zealand, Papua New Guinea, and Fiji. The family controls approximately 39% of the voting shares in News Corp.
Irrevocable trusts, typically used to limit estate taxes, cannot be altered without beneficiary permission or a court order. The ongoing case highlights the complex interplay between family dynamics, business interests, and legal structures in one of the world's most influential media conglomerates.
As the hearings progress, the media industry and legal observers await the outcome, which could have far-reaching implications for the future of Murdoch's media empire and its editorial direction.