The conservative leanings of Rupert Murdoch’s newspaper and TV empire have led to his proposal to amend an irrevocable family trust to ensure his eldest son Lachlan retains control of the company after his death to be cleared by Nevada probate. The committee’s refusal could put it in jeopardy.
Probate Commissioner Edmund Gorman Jr. of the Second Judicial District Court in Reno, Nevada, issued the ruling on Saturday.
According to a sealed court opinion reportedly obtained by The New newspaper, Mr Gorman said Mr Murdoch, 93, and his son had excluded three of Mr Lachlan’s brothers from sharing control of the company. The court concluded that he acted in “malice” by attempting to change the family trust in order to do so. York Times.
Upon Murdoch’s death, the family trust requires Lachlan Murdoch to share control of his father’s media empire equally with his siblings James, Elizabeth and Prudence.
Lachlan Murdoch reportedly has the same conservative political views as his father, but James, Elizabeth and Prudence are thought to be less conservative.
Rupert Murdoch and his sons Lachlan Murdoch (left) and James Murdoch (right) arrive at St Bride’s Church for a service celebrating his marriage to Gerry Hall on March 5, 2016 in London.
Max Manby/Indigo/Getty Images
A spokesperson for Prudence, Elizabeth and James Murdoch told ABC News: “We welcome Secretary Gorman’s decision and look forward to moving beyond this litigation and focusing on strengthening and rebuilding relationships for our entire family.” said.
Rupert Murdoch’s legal team declined to comment in response to multiple inquiries from ABC News.
Gorman reached his decision after a seven-day evidentiary hearing earlier this year.
Rupert Murdoch’s lawyers have argued that to preserve the commercial value of the media giant’s business, the trust needs to be amended to allow Lachlan Murdoch to retain control of the company. .
Fox Corporation became a public company in 2019, the same year that 53-year-old Lachlan Murdoch was promoted to chairman and CEO of Fox Corporation.
In September 2023, it was announced that Rupert Murdoch would step down and take up a new role as chairman emeritus, with Lachlan Murdoch taking over as head of the media empire.
Lachlan Murdoch said in a statement at the time: “On behalf of the FOX and News Corp. boards, management teams and all the shareholders who have benefited from my father’s hard work, I would like to congratulate my father on his incredible 70-year career. I bless you.” . “We are grateful for his vision, pioneering spirit, unwavering determination, and lasting legacy for the companies he founded and the countless people he influenced.”
The family trust lawsuit comes after Rupert Murdoch and Lachlan Murdoch ideologically pushed Fox News further to the right during President-elect Donald Trump’s first term in the White House, citing political differences. It exposed the rift within the Murdoch family, which was at loggerheads. .
Rupert Murdoch’s lawyers are seeking to ensure that Lachlan Murdoch maintains the conservative leanings of his media outlets, including Fox News, News Corp, the Wall Street Journal and newspapers. It argued that family trusts needed to be amended to preserve the commercial value of major businesses. known as the New York Post. Mr Murdoch’s lawyers argued the move was in the economic interest of all trust beneficiaries.
However, according to the Times, Mr Gorman said in his judgment that Rupert Murdoch and Lachlan had sought to change the family trust to ensure Mr Lachlan’s power over company decisions for years to come. Mr Murdoch’s efforts were a “carefully crafted show”, he wrote.
Mr Gorman said the intention of the proposed amendments to the trust was to “permanently consolidate” Lachlan Murdoch’s management role in the company “irrespective of the impact such control may have on the company or beneficiaries of the trust”. ” claimed to be a thing.
“This effort was an attempt to position Lachlan Murdoch in a favorable position following the death of Rupert Murdoch and to establish his successor as permanent,” Gorman wrote, according to the Times. “The play may have worked, but the evidentiary hearing is like a duel in a poker game, where gamesmanship collides with the facts, and at its conclusion all bluffs are called and the cards are Turn outward.”
Gorman continued, “After considering the facts of this case in light of the law, the court looks at the cards as they are and finds that this raw transaction cannot take precedence over this probate commissioner’s signature.” concluded,” he added.
The battle to change trust is not over yet. Mr Gorman’s recommendation to refuse Rupert Murdoch’s request now goes to district judges, who can approve or reject it.
Even if the district judge approves Mr Gorman’s recommendations, Rupert Murdoch and Lachlan Murdoch will take steps to increase Mr Lachlan’s power within the company, including buying out Mr Lachlan’s brother’s shares in the company. He may pursue another path, the Times reported.
Rupert Murdoch’s two youngest children with his third wife, Wendy Deng, are not involved in the trust litigation. They were bequeathed equal financial shares in the company, but had no voting rights, according to the Times.
ABC News’ Tenzin Shakya contributed to this report.
