Who is Rupert Murdoch, and why is there a major succession battle for his legacy?

Currently, News Corp owns major publications such as the New York Post, the Wall Street Journal, and the Dow Jones company. Fox Corp comprises all the Fox-branded companies that were not sold to Disney in 2019, and includes Fox News and the Fox broadcast network.

Rupert was born in 1931 to journalist-turned-media magnate Keith Murdoch and Elisabeth. He inherited News Corp Australia after his father’s death in 1952.

The Oxford graduate built on this legacy, acquiring newspapers in trouble in Australia and the United Kingdom in the 1950s and 1960s, and establishing what is known today as tabloid culture. He made inroads into the United States in 1973, moving to New York City a year later and purchasing the New York Post in 1976. He became a US citizen in 1985 and founded Fox Broadcasting Company in 1986.

Over the years, Murdoch has presided over scandals, including the 2005 phone-tapping scandal in the UK. Most recently, he lost a lawsuit against Dominion Systems for spreading misinformation about the company and damaging its reputation during the 2020 presidential elections. His companies have influenced public opinion, with the Sun and the Daily Mail notably influencing anti-EU sentiment with their reportage.

What is the present case about?

As of now, Murdoch’s four eldest children — Prudence, Elisabeth, Lachlan, and James — will equally inherit his voting shares across his various media businesses. This is made possible through the Murdoch trust, formed during his divorce from his second wife, Anna Murdoch Mann, in 1999. It was designed to be ‘irrevocable,’ making it difficult to change.

However, Murdoch now wishes to transfer the bulk of this power to Lachlan, to whom he grew ideologically close during Trump’s presidency. Fox News had shifted towards far-right rhetoric and did not shy from embracing the President’s outlandish claims about “stolen elections,” despite knowing they were untrue.

These developments happened to the consternation of the other Murdochs. James, who had been primed to succeed Rupert, resigned from the board of News Corp in July 2020. He had shared operating responsibility of Fox Corp and News Corp with Lachlan until then.

Murdoch fears that the trust as it stands could present a situation where the other three heirs would overrule Lachlan and set up a battle for the future of the companies. It could also shift Fox News away from its far-right base and towards the centrist sensibilities the other siblings align with.

The news came to light following a report by the New York Times, which had acquired a court-sealed document detailing the dispute.

That the dispute is playing out in Nevada is significant: Nevada’s probate law is favoured by dynastic family trusts owing to its privacy and tax provisions. Thus, the court case continues to unfold behind closed doors.

The hearing will now determine whether Murdoch is acting in good faith to empower only Lachlan to run the company without sibling interference and ensure its commercial value will be protected for all four heirs.