A legal dispute within one of the world’s most powerful families, the Murdoch family, will be heard in a U.S. court this week.
The trial will centre on the future of 93-year-old Rupert Murdoch’s media empire.
Earlier this year, The New York Times reported Rupert wanted to update his will to ensure Lachlan – his eldest son – controls the family business after he dies.
Three of Rupert’s other children – Elisabeth, James, and Prudence – are now trying to challenge their father’s plans to name Lachlan as his successor.
Murdoch family
Rupert Murdoch started in media in the 1950s, when he inherited his father’s newspaper business in Adelaide.
The Australian-born media mogul owns several American, Australian and UK publications and TV networks. This includes Fox Corporation, News Corp, and the Wall Street Journal.
Forbes estimates his net worth is $US20.2 billion ($AU30.3 billion).
Rupert has six children from five marriages.
Lachlan Murdoch
Lachlan Murdoch is the 53-year-old son of Rupert. His mother is Anna Murdoch, Rupert’s second wife. She is also the mother of Elizabeth and James Murdoch.
Over recent years, Rupert has handed increasing business responsibilities to his eldest son. In 2019, Lachlan was named CEO of Fox.
Last year, Rupert stepped down as chairman of Fox and News Corp after almost 70 years.
An announcement said Lachlan would become the sole Chair of News Corp, and continue as CEO of Fox.
Succession
After divorcing Anna in 1999, Rupert Murdoch set up what’s known as an “irrevocable trust”.
Like a will, the legal document details how his business empire and assets should be divided when he dies.
Murdoch’s assets such as his shares and property will be equally shared between his six children.
However, according to The New York Times (NYT), control over his companies (voting rights) will be shared between Elisabeth, Lachlan, James, and Prudence MacLeod (from his first marriage).
Once an irrevocable trust is finalised, its terms cannot be changed.
Lachlan has become more involved in the family business. His siblings have pursued different interests. Rupert and Lachlan are also believed to be more politically aligned.
Rupert is reportedly seeking to change his trust. Instead of the four siblings sharing voting rights in Fox and News Corp, Lachlan would be given control over his father’s media empire.
According to court documents accessed by the NYT, Rupert’s other children have challenged the legality of changing the trust.
U.S. court
The court case between Murdoch and his children is being held in Nevada.
The U.S. state has strict privacy laws and trusts are not subject to inheritance tax there.
The two-week trial will determine if the trust, which currently gives four of Murdoch’s children equal voting powers in Murdoch’s companies to the four children, can be changed.
Proceedings are expected to begin in the city of Reno later this week. While details of the case have been kept largely out of the public eye, several U.S. news outlets are seeking for the proceedings to be made public.
