The Murdoch family has settled its succession battle over Rupert Murdoch’s media empire.
They were embroiled in a long-running legal dispute over the future of the Murdoch empire, which includes Fox News, The Wall Street Journal, and The Times.
But on Monday, News Corp confirmed that a deal had been reached, with Rupert’s eldest son, Lachlan, 54, securing control of the business.
The agreement ends the family debate over who would take control of the business – a battle which was purportedly one of the inspirations behind the hit TV series Succession.
Rupert, 94, and Lachlan had attempted to change the terms of the family trust that gave four of his children – Lachlan, James, Elisabeth, and Prudence – equal voting rights upon his death.
Now, the dispute has been solved with Lachlan taking control while Prudence, Elisabeth, and James have been bought out of their stake in News Corp and Fox Corp.
They will receive funds partly from the immediate sale of 14.2 million shares of News Corp Class B common stock and approximately 16.9 million shares of Fox Corporation Class B common stock, previously held by the MFT.
The amount of the payment was not disclosed, but one source told the New York Times it is expected to be around USD$1.1billion (AUD$1.67billion).
The move ends the three siblings’ future involvement in News Corp, including their voting interests, and they have agreed not to buy any further shares in the companies.
The settlement also includes the creation of new trusts for Lachlan and his two youngest siblings, Grace and Chloe, whom Rupert shares with his ex-wife, Wendi Deng Murdoch.
According to the source, this trust is worth around USD$3.3billion (AUD$5billion). It will hold 36% of Fox’s Class B common stock and 33% of News Corp’s Class B shares.
“News Corp’s board of directors welcomes these developments and believes that the leadership, vision, and management by the Company’s Chair, Lachlan Murdoch, will continue to be important to guiding the Company’s strategy and success,” News Corp said in a statement.
The decision for Lachlan to retain control of the media empire brings to an end the bitter succession dispute.
The feud was sparked by a plan to change the Murdoch family trust to enable Lachlan to take control upon Rupert’s death.
However, James, Elisabeth, and Prudence opposed the plan. Rupert shares Lachlan, James, and Elisabeth with Anna Murdoch, while Prudence’s mother is Patricia Booker.
The dispute went before a Nevada court last year, and in December, it was ruled that Rupert and Lachlan had acted in “bad faith” in amending the trust, according to reports at the time.
