Media mogul Rupert Murdoch and his four children appeared in a closed-door hearing in Nevada to determine who will control his media empire after his death. The hearing comes after Murdoch, 93, attempted to change the terms of his irrevocable family trust to ensure that his eldest son, Lachlan, remains in charge. The trust was originally set up to give equal control over Murdoch’s businesses to his four oldest children. The court has kept the hearings closed to the public and most documents sealed.
Rupert Murdoch stepped down as leader of Fox News’ parent company and News Corp. last fall, arguing that the trust must be changed to preserve the commercial value of his businesses for all his heirs. Lachlan Murdoch succeeded his father as chairman of News Corp. in November and is also executive officer at Fox Corp., which includes Fox News and other networks. The media empire has a significant influence on modern American politics.
The bid to change the trust has caused a rift between Rupert Murdoch and his other three children – James, Elisabeth, and Prudence – who have united to prevent their father from revising the trust. Irrevocable trusts are typically used to limit estate taxes and cannot be changed without permission from the beneficiaries or a court order. Nevada Probate Commissioner ruled that Murdoch could amend the trust if he can show he is acting in good faith and for the sole benefit of his heirs.
More than 40 lawyers are involved in the proceedings, with the hearings expected to continue into the following week. The first of the carloads of attorneys arrived before the hearing, followed by James Murdoch, Elisabeth Murdoch, Rupert Murdoch, and Lachlan Murdoch along with their respective spouses. The closed-door hearings have attracted significant media attention, with reporters and cameras outside the courthouse in Reno, Nevada.
The trust amendment sought by Murdoch is motivated by a desire to maintain a conservative editorial outlook at his newspapers and TV networks, including The Wall Street Journal and Fox News, under Lachlan’s leadership. Rupert Murdoch’s concern is that a lack of consensus among his children could affect the strategic direction of his companies, potentially leading to changes in editorial policy and content. The outcome of the hearings could have a significant impact on the future of Murdoch’s media empire.
