 "Why Rupert Murdoch is in a secret battle with his children for control of his empire")
It could be a plot point right out of the HBO TV show Succession.
Billionaire Rupert Murdoch is attempting to change the terms of the irrevocable family trust.
Murdoch is doing so to ensure that his eldest son and chosen heir Lachlan retains control of his vast empire after his passing.
Lachlan took over as chairman of News Corporation and Fox Corporation in November after his father stunned the world by announcing he would be “transition to the role of Chairman Emeritus” – essentially ending his decades-long career.
But what do we know about Murdoch’s move? Why has it led to a family feud?
Let’s take a closer look:
What we know about the move?
First, let’s understand how the family media empire works.
At the heart of it is the irrevocable family trust controlled by Rupert.
Four of his eldest children – Lachlan, James, Elizabeth and Prudence – are all on the board of the trust.
Rupert himself has four votes while his children Lachlan, James, Elisabeth and Prudence have one each.
After Rupert’s death, all his votes will be split equally between his children.
Now, according to The New York Times, Rupert last year filed a case to change the terms of the trust after he dies.
Rupert, who has dubbed the move ‘Project Harmony’, is in court is arguing that the terms of the trust need to be changed to favour Lachlan after his demise.
Impact Shorts
More ShortsRupert is essentially arguing that Lachlan must be given more power to to be shielded from his siblings so that his empire can continue its conservative bent.
This, he says, will protect the empire’s commercial value for all his heirs.
Why has it led to a family feud?
Because James, Elizabeth and Prudence have been completely blindsided by their father’s move, according to per The New York Times.
Meanwhile, Lachlan has sided with Rupert.
Here, it is instructive to take a look at the Murdoch family dynamics.
Lachlan is Rupert’s oldest son from his second marriage.
He was born in 1971 in Wimbledon.
Lachlan grew up in New York City and studied at Massachusetts school Phillips Academy, as per Hello Magazine.
He would receive his degree in philosophy from Princeton.
As per BBC, Lachlan’s thesis as a senior on German philosophy began with a quote from Lord Byron.
While serving as deputy chief operating officer from 2000 to 2005, his titles also included chairman of Fox Television Stations and publisher of the New York Post.
According to CNN, Lachlan departed his father’s businesses after a fight with former top executive Roger Ailes about Fox’s direction in 2005.
Ailes wanted to be the top dog at Fox News, but Lachlan said no.
But his father overruled him – leading Lachlan to feel betrayed.
I have to do my own thing,” he is said to have told his father.
During Lachlan’s long hiatus from the family business, he founded the private investment company Illyria Pty.
During Lachlan’s long hiatus from the family business, he founded the private investment company Illyria Pty.
A New York Magazine piece from the time would label Lachlan “the boy who wouldn’t be king”.
When he left he was determined not to ever go back to his father’s company,” Paddy Manning, an Australian journalist who wrote a biography of Lachlan, told BBC.
But Lachlan would eventually return to the fold a decade later in 2015 – as executive chairman of 21st Century Fox.
Lachlan vs James
James, also from Rupert’s second marriage, is Lachlan’s younger brother.
James in 1995 dropped out of Harvard University to develop a record label. The company, Rawkus Records, was eventually bought by News Corp, according to several news reports.
In the years following, James served as CEO of Star India, CEO of Sky (then British Sky Broadcasting) and chairman of Sky. James was embroiled in the 2011 News of the World phone hacking scandal along with his father, but both Murdochs denied responsibility.
In addition to his time as CEO at 21st Century Fox, James held various executive positions at News. Corp over the years, but later resigned from family-controlled publisher’s board over content appearing in its newspapers, which include the Wall Street Journal and the New York Post.
Less than two years apart in age, the pair were said to be fiercely competitive as children.
A Vanity Fair piece said Rupert had long been obsessing over the question of who will succeed him – a question he posited to solve through a ‘Darwinian struggle’.
“He pitted his kids against each other their entire lives. It’s sad,” a person close to the family was quoted as saying in the piece.
As per a 2019 New York Times Magazine piece, the brothers had over the years alternated between playing the “heir apparent and jilted son”
However, some contend that Rupert always had his heart set on his eldest son for his heir.
“It was no secret to those close to the family that Murdoch had always favoured Lachlan,” the New York Times Magazine article stated.
The Vanity Fair piece said Lachlan and Rupert had much in common – right-wing politics, a love for newspapers and Australia.
“Lachlan was the golden child,” a person close to the family told the outlet.
A person close to James described Lachlan’s return to his father’s side as a “big slap in the face.”
The brothers are said to be no longer on speaking terms.
As per Vanity Fair, James is appalled by Fox News’ climate denialism, white nationalism, and stolen election conspiracies.
Elizabeth, also from Rupert’s second marriage, is their younger sister.
Much like characters on the TV series Succession, Lachlan, James and Elisabeth all spent years vying for their father’s approval – and to be named heir to his vast media empire.
Prudence is Rupert’s eldest daughter from his first marriage.
According to The New York Times, Prudence is not at all interested in the family business.
Elizabeth, like James, also left the Murdoch media empire.
She now runs a film studio.
According to The New York Times, she has sought to develop good relations with all her siblings.
What happens next?
The newspaper quoted a person in the know as saying that although Rupert has made the move to ensure things go smoothly after he passes, it has ignited a family feud.
Though Murdoch met with both Elisabeth and Prudence separately in London, he could not get their support.
They were reportedly furious with Elisabeth letting out a ‘string of expletives.’
As per CNN, the three siblings have sought to challenge Rupert’s changes to the irrevocable trust.
They have argued that the their father is not acting in good faith and is thus ‘violating the spirit that the trust was created in’.
The trial, which could begin in September, just months ahead of the US presidential polls, will make for interesting viewing.
With inputs from agencies
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