Murdoch fails to change family trust to benefit eldest son

Rupert Murdoch's four eldest children will retain shared control of the family media empire their father built, despite Murdoch's efforts to ensure that his eldest son, Lachlan, would assume a more prominent and decisive role in running the family businesses.

Edmund J. Gorman Jr, the commissioner in charge of the case, called the plan to modify the trust a "carefully crafted charade" aimed at ensuring Lachlan's absolute control over the media conglomerate, which includes The Wall Street Journal and the Fox News television network, among other influential media outlets.

In a 96-page ruling, Gorman concluded that Rupert and Lachlan acted in "bad faith" in attempting to reconfigure the irrevocable trust, which distributes control of the companies equally among Murdoch's four eldest children: Lachlan, James, Elisabeth and Prudence. However, Rupert Murdoch defended the changes, arguing that they were intended to preserve both the financial success and the conservative editorial line of Fox News and other media outlets in the group.

Preserving the conservative legacy

The dispute over the family trust is not financially focused, as Murdoch is not seeking to alter his sons' stakes in the company. Rupert Murdoch, 93, has dedicated his life to building a media empire that gives voice to conservative values. For Murdoch, the proposal to concentrate leadership in Lachlan reflects his desire to ensure that this legacy is not diluted, especially in the face of James and Elisabeth's less conservative positions, which could jeopardize the group's stability and ideological identity.

According to a report in the New York Times, Murdoch and Lachlan were increasingly concerned that James, who left the company and maintains a distant relationship with both his father and brother, was planning a coup alongside Elisabeth and Prudence. This alleged plot was aimed at displacing Lachlan from leadership following the death of Rupert Murdoch and redirecting the editorial orientation of the media empire towards less conservative positions.

As part of the court proceedings, lawyers for Rupert and Lachlan pointed to a meeting between James, Elisabeth and Prudence, held at Claridge's Hotel in London in September 2023, as key evidence of the conspiracy. However, Gorman dismissed these allegations, deeming the accounts of the meeting insufficient to prove the existence of an organized plot.

Uncertain future for the media empire

Gorman's decision is not final. His role as special expert means that the recommendation must be ratified or rejected by a district judge. Meanwhile, Adam Streisand, Rupert Murdoch's attorney, expressed his disagreement with the ruling and confirmed the intention to appeal.