Rupert Murdoch's Family Seals Succession Deal: Who Gets What

Succession Deal: Rupert Murdoch finalised his succession deal on Monday, giving control of his media empire, including the Fox News and The Wall Street Journal, to his eldest son Lachlan Murdoch. The 94-year-old Australian-born media tycoon and his family resolved the long-running question of who will take over his influential companies after its patriarch's death. The high-profile family feud is believed to have inspired for the popular television series 'Succession', which depicts the infighting among siblings.

The dispute arose from Rupert Murdoch's decision in February 2022 to file a 'change of terms' petition for his 'irrevocable' family trust, called the Murdoch Family Trust (MFT). Rupert wanted his eldest son, Lachlan Murdoch, to have full control over News Corp and hundreds of related assets after his death, instead of sharing equal voting rights with his three siblings: Prudence, Elizabeth, and James Murdoch. However, the other siblings fought hard, leading to court cases and secret negotiations. By the summer of 2023, the Murdoch family reached a private settlement, officially ending the long-standing succession battle.

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Murdoch Family Succession Deal: All You Need To Know

1. A settlement of USD 3.3 billion was reached. Each of the three siblings-Prudence, Elisabeth, and James-will receive a payout of USD 1.1 billion.

2. In exchange, they have agreed to give up their shares in the media companies, Fox Corp and News Corp.

3. The payout will be funded by the Murdoch Family Trust selling 16.9 million Fox Class B shares and 14.2 million News Corp Class B shares from the family trust.

4. The original Murdoch family trust, which included Rupert's four eldest children, will be dissolved.

5. A new trust will be established, headed by Lachlan and his two younger half-sisters, Grace, and Chloe.

6. Prudence, Elisabeth, and James will no longer be beneficiaries.

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7. The remaining voting shares will be transferred to a new entity, LGC Holdco, LLC, controlled by the trusts for Lachlan, Grace, and Chloe.

8. This structure gives Lachlan crucial voting control over these shares until 2050.

9. Rupert Murdoch will remain Chairman Emeritus, an advisory position within the companies.

10. The original trust had equally divided voting rights among the four siblings upon Rupert's death. However, a sudden ideological change in Rupert's son, James, who resigned from the News Corp board in July 2020, led him to become a vocal critic of Fox News's conservative stance. This created a strong risk that James, Prudence, and Elisabeth could form a voting bloc to overrule Lachlan and change the company's direction. The new deal prevents this possibility, consolidating power under Lachlan.