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Rupert Murdoch and his family have resolved the battle over their media empire
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A settlement was reached over who would control Rupert Murdoch’s media empire.
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News Corp Chair and Fox CEO Lachlan Murdoch was chosen to control the family trust.
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Murdoch’s three other oldest children had opposed the move.
Shares of News Corp (NWSA) and Fox (FOXA) declined in premarket trading after Rupert Murdoch’s media empire settled a yearslong family fight over which of the mogul’s children will control the Murdoch family trust.
News Corp announced that Murdoch’s oldest son, Lachlan, who is chair of News Corp and CEO of Fox Corp., will be in charge of the trust. Previously, Lachlan and siblings Prudence MacLeod, Elisabeth Murdoch, and James Murdoch had equal voting shares.
Under the new arrangement, Prudence MacLeod, Elisabeth Murdoch, and James Murdoch will give up their claim to the trust and receive new trusts paid for by the sale of some of the MFT’s stock holdings. In addition, new trusts will be created for Lachlan and the two children Rupert Murdoch had with Wendi Deng, Grace and Chloe Murdoch.
A holding company owned by Lachlan, Grace, and Chloe Murdoch will control all the shares that were in the Murdoch trust, which amounts to approximately 33.1% of News Corp’s Class B stock and 36.2% of Fox Class B stock.
The family had been feuding over the trust after Rupert Murdoch moved to amend the trust and put Lachlan in charge, a step the three older children opposed. The battle led to litigation in a Nevada court, which News Corp now explained was terminated following the settlement.
News Corp shares are 6% higher this year, and Fox shares have gained 16%.
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