Murdoch’s control of media at stake as hearing begins with mogul and his children

The trust was originally set up to give equal control over Rupert Murdoch’s businesses to his four eldest children after his death, according to the Times | Photo: Wikimedia Commons

3 minutes reading Last updated: September 17, 2024 | 11:52 a.m. IST

Rupert Murdoch and four of his children appeared behind closed doors before a Nevada probate commissioner on Monday for an evidentiary hearing that could decide who controls Murdoch’s media empire after his death.

The hearing, which is scheduled to resume Tuesday and continue next week, comes after Murdoch, 93, last year sought to change the terms of his irrevocable family trust.

The New York Times reported, based on a sealed Washoe County court document, that it was part of an effort to ensure that his eldest son, Lachlan, remains at the helm of his group of newspapers and television networks, including the Wall Street Journal and Fox News Channel.

The court kept the hearings closed and most documents sealed, largely rejecting requests for access from news organizations, including The Associated Press.

According to the Times, the trust was originally created to give equal control over Rupert Murdoch’s businesses to his four eldest children after his death.

Murdoch stepped down as chairman of Fox News’ parent company and its News Corp. media holdings last fall. He believes that to preserve the commercial value of his companies for all his heirs, the trust must be changed so that Lachlan can ensure that his newspapers and television networks continue to have a conservative editorial outlook, the Times reported.

Lachlan succeeded his father as chairman of News Corp. in November. He is also chief executive of Fox Corp., which is home to the conservative Fox News network, the Fox broadcast and sports networks and local television stations. The media empire spans multiple continents and has helped shape modern American politics.

Rupert Murdoch’s attempt to amend the trust pitted him against his three other children named as beneficiaries: James, Elisabeth and Prudence, and they joined forces to prevent their father from revising the trust, according to the Times.

Irrevocable trusts are typically used to limit inheritance taxes, among other reasons, and cannot be changed without the permission of the beneficiaries or through a court order.

Nevada Probate Commissioner Edmund J. Gorman of the 2nd Judicial District Court in Reno ruled this summer that Rupert Murdoch could modify the trust if he could prove he was acting in good faith and in the exclusive interest of his heirs, the Times reported.

The court ruling notes that Murdoch sought to give Lachlan permanent and exclusive control over his businesses because the mogul feared that a lack of consensus among his children could affect the strategic direction of his companies, including potentially leading to a change in editorial policy and content, according to the Times report.

The hearing is expected to continue next week. More than 40 lawyers are on the court’s docket.

The first convoys of lawyers began arriving Monday an hour before the hearing, some dividing up boxes of legal documents to carry up the courthouse steps through a crowd of camera-toting reporters and a half-dozen sheriff’s deputies a few blocks south of Reno’s main casino district.

James Murdoch and his wife, Karen, and their sister, Elisabeth Murdoch, then arrived in separate vehicles, in the same convoy of black SUVs. About 20 minutes later, Rupert Murdoch arrived with his wife, followed by Lachlan Murdoch and his wife, Sarah.

(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First published: September 17, 2024 | 11:52 a.m. IST