Succession feud: Rupert Murdoch moves to ensure media empire’s conservative stance

Rupert Murdoch, patriarch of the sprawling media empire that owns Fox News and Wall Street Journal, has moved to change the terms of his family’s irrevocable trust to ensure his business remains a conservative political force after his death, the New York Times reported, citing a sealed court document.

The 93-year-old Murdoch made the move late last year to ensure Lachlan, his successor chosen in 2018 and eldest son, remains in charge of his empire. The amendment would expand Lachlan’s voting power and ensure he can’t be challenged.

The patriarch argued that the move is aimed at blocking the influence of Lachlan’s more politically moderate siblings to protect the media empire’s commercial value for all heirs.

But the three siblings – James, Elisabeth and Prudence – have united to stop Murdoch rewriting the trust’s terms, sparking a secret legal battle reminiscent of the popular TV drama Succession that’s loosely based on the Murdoch family.

The Reno, Nevada-based trust holds the family’s shares in the Murdoch empire that are mainly divided between Fox Corp (NASDAQ:FOX) and News Corp (NASDAQ:NWSA). Murdoch’s six children have an equal share of the trust’s equity, but younger daughters Chloe and Grace don’t have voting rights. The amendment wouldn’t affect anyone’s ownership stake.

Murdoch is said to be concerned that the “lack of consensus” among his children “would impact the strategic direction at both companies including a potential reorientation of editorial policy and content.”

Nevada probate commissioner Edmund Gorman said Murdoch can amend the terms of the trust if he can prove that he’s acting in good faith and for the sole benefit of his heirs. The trial to determine this is expected to start in September.

To support his argument that the amendment is for the benefit of all his heirs, Murdoch moved to replace two of his personal representatives on the trust with people he believes are more independent – one of whom is former attorney general William Barr.