Real Murdoch succession struggle is public, and over

Barring surprises, the Murdoch succession war is over. But its story is more public than ever.

• In December, a Nevada court rejected plans to restructure the family trust to allow Rupert Murdoch’s oldest son, Lachlan, to run Murdoch Sr’s media empire after he dies.
• In the past week, two pillars of the liberal journalistic establishment Murdoch scorns have published long-form exposés on the fissures driving his children apart.

So what? This could lead to the sale of the newspaper business in the UK and US, which would end decades of Murdoch family influence in the British political system.

Trust is the wrong word. The Murdoch family trust, known as Cruden, owns 40 per cent of Fox Corp (Fox News, TV stations) and News Corp (newspapers, books). Created after Rupert’s divorce from his second wife, Anna, it has eight directors, four representing Rupert – KRM in the court papers – and one each for siblings Lachlan, James, Liz and Prue.

• After Rupert’s death, the trust splits equally between the siblings. Rupert wanted to change this in Lachlan’s favour, fearing the others’ liberal views would de-fang his legacy.
• Nevada rules allow Rupert to change the trust “in good faith for the sole benefit of the beneficiaries”.
• On 7 December last year, Nevada probate commissioner Edmund Gorman rejected both the good faith and benefit arguments, calling the bid to amend the trust “a carefully crafted charade”.
• Rupert has appealed, but analysts believe this is unlikely to succeed.

Discover this. Family disharmony and backstabbing in emails and text messages are revealed in excruciating detail in legal discovery documents leaked to the New York Times. They show that the three siblings bracketed together as the “Objecting Children” – James, Liz and Prue – were not especially united before what Rupert and his lawyers called Project Family Harmony began.

“You’re being lobbied by James,” Rupert texted Liz in 2023. “And you’re going to bend to his will.” She replied: “Do you think I’m a fucking moron?”

As for James, he was identified in Project Family Harmony documents as “the troublesome beneficiary”, not least because he was blamed for a 2023 Financial Times story quoting a source saying “Lachlan gets fired the day Rupert dies”. In fact, The Atlantic reports, Lachlan’s own representative was the source.

Blame Succession. Jesse Armstrong’s Murdoch-based drama killed off Rupert’s avatar Logan Roy in season four, prompting Prue and Liz to consider plans for Rupert’s passing. Meetings to discuss this pushed Rupert into legal action.

Split and sell. Rupert and Lachlan tried to merge News Corp and Fox in 2022 but were prevented by objections from shareholders, including James.

The family trust can be dissolved in 2030, and if the 93-year-old Rupert lives until then he may dissolve it. Individual siblings’ stakes would then convert to a trifling 6.5 per cent each of News Corp and Fox Corp. But if Rupert dies before the end of the decade, analysts believe the three Objecting Children will

• keep the trust;
• keep the profitable Fox Corp; and
• sell the Times and Sunday Times, Dow Jones – including the Wall Street Journal and Harper Collins.

The Sun’s future is unclear.

This strategy would limit the number of dilemmas facing the Murdoch grandchildren – of whom there are currently 13 – who will ultimately inherit what remains of the empire.

Kendall in the Hudson. “I feel sorry for Lachlan,” one analyst says. “He is KRM’s choice by default. The others think ‘better Lachlan than me’ but will not allow him to make decisions.”

Coda. In November 2024 James, Liz and Prue suggested the family resolve things amicably. Rupert instructed them to have their lawyers contact his if they wanted to talk. He ended his message: “Much love, Dad.”