Rupert Murdoch’s family has never been short on deep establishment ties. Until recently, though, all new developments pointed towards an empire-wide consolidation of worst-case-scenario power within the media titan’s media empire. Lachlan Murdoch, designated successor to his father, recently unveiled plans that could reshape the family’s influence over their media holdings. The TIF conversion comes in the wake of enormous shifts in asset valuation and ownership. These changes took place following Disney’s purchase of large chunks of Fox Corporation back in 2019.
In that historic transaction, Rupert Murdoch sold much of Fox Corporation to Disney for $71 billion. The Murdoch family trust received an estimated $12.6 billion in stock through this transaction. Each of Rupert’s six children—Prudence, Elisabeth, James, Lachlan, Grace, and Chloe—now has about $2.1 billion worth of Disney stock. These numbers showcase the colossal fortune the family has at their disposal and the high stakes which come with their media operations.
Lachlan’s Strategic Moves
In October 2023, Lachlan Murdoch returned with an even bolder plan. His strategy was to consolidate his control over the family’s failing trust and force his siblings into submission. His plan would remove Prudence, Elisabeth, and James from the family trust. This action completely disenfranchises them of their vote on fundamental and strategic decisions for the future of News Corporation and Fox.
As part of the deal Lachlan sweetened the pot for his siblings, offering them roughly 60 percent of market value for their trust-held shares. This package amounted to up $1.3 billion. This proposal is a big deal—especially for Lachlan. Rupert Murdoch publicly called for him to use his powers to buy James Murdoch out of the trust. The relationship between Lachlan’s son James and his brother was strained even before this buyout, raising questions about the buyout’s legitimacy.
“The Departing Beneficiaries will be subject to a long-term standstill agreement preventing them, and their affiliates, from acquiring shares of FOX and News Corporation and taking certain other actions with respect to the companies.” – Source not found
This new settlement highlights just how strategic Lachlan’s maneuvers are. He wards off his infamous siblings from getting involved in directing the organizations. This step is presumably intended to cement his control as the undisputed head of the family firm.
Family Trust and Historical Context
Twenty years ago Rupert Murdoch pulled an audacious stunt. His goal was to give Grace and Chloe the same status in the family trust. That split ended in a $900 million cash-and-stock settlement distributed between the six children.
Today’s dynamics are a manifestation of historic undercurrents that have always run deep in the family, especially around power and asset distribution. Grace and Chloe are each entitled to one-third of the trust’s assets. Yet they are not allowed to vote in critical decisions. This is reminiscent of previous fights but marks a different phase as Lachlan moves to take full control.
Rupert Murdoch’s control over his sprawling empire has apparently dropped to its lowest level in decades. This new development prompts some crucial questions regarding the inevitable future direction of his media holdings. Lachlan isn’t messing around with his moves to assert his control. Simultaneously, he has the Herculean task of turning around a crushingly high $2 billion in debt.
The Future of News Corporation
So Lachlan Murdoch is doubling, tripling, quadrupling down on his plans. It is still unclear what these moves will mean for the market share of News Corporation and Fox. We know that the media landscape is more competitive than ever and that strong, cohesive leadership is needed now, more than ever before.
The Murdoch family’s legacy has been formed by the hands of opportunity as well as the fist of in-fighting. Recent events illustrate a critical moment in this legacy as Lachlan attempts to navigate familial relationships while solidifying his role at the helm of a major media empire.
