Judge rejects Rupert Murdoch’s bid to pass Fox News solely to his son
A probate commissioner has ruled against Rupert Murdoch’s efforts to change his family trust to give one of his sons control of his media empire and ensure Fox News maintains its conservative editorial orientation, according to a sealed document obtained by The New York Times.
In a decision filed on December 7, the Nevada probate commissioner concluded that Mr. Murdoch and his son, Lachlan Murdoch, acted in “bad faith” in seeking to modify the irrevocable trust, the New York Times reported in December. 9.
The trust divides control of the company equally between Rupert Murdoch’s four children – Prudence, Elizabeth, Lachlan and James – after his death. Lachlan Murdoch has been president of Fox News and News Corp since late last year, when his father stepped down from his position.
The elder Mr. Murdoch has argued that in order to preserve the commercial value of his companies for all of his heirs, the trust should be changed to allow Lachlan Murdoch to maintain the conservative orientation of Fox News. James and Elizabeth Murdoch are known to have less conservative political views than their father or brother, which could complicate efforts to ensure Fox News remains conservative.
Besides Fox News, Mr. Murdoch Sr. created the Fox Broadcast Network, the first network to successfully challenge the Big Three of ABC, CBS and NBC, with shows like “The Simpsons.” He is the owner of the Wall Street Journal and the New York Post.
He has been reducing his holdings in the company by selling several entertainment assets in 2019 to The Walt Disney Company. This included film production, the rights to some Marvel comics, National Geographic, and the cable network FX.
Fox News has had a profound influence on television and the country’s politics since its inception in 1996, making the elder Mr. Murdoch a hero to some and a pariah to others. The 24-hour network transferred the power and energy of political talk radio to television. Within six years, it had overtaken CNN and MSNBC.
In his 96-page opinion this week, Nevada Probate Commissioner Edmund J. Gorman Jr., of the 2nd Judicial District Court, described the fund change plan as a “carefully crafted charade” to “permanently entrench Lachlan Murdoch’s executive roles” within the empire. “Regardless of the effects such control may have on the companies or beneficiaries” of the family trust.
Adam Streisand, Rupert Murdoch’s lawyer, told the newspaper that his client and his son were disappointed with the ruling and planned to appeal.
A spokesperson for Prudence, Elizabeth and James Murdoch said in an emailed statement to The Associated Press that they welcome the ruling and hope their families can “move beyond this litigation to focus on strengthening and rebuilding relationships among all family members.”
“These efforts were an attempt to stack the deck in Lachlan Murdoch’s favor after the death of Rupert Murdoch so that his succession would be immutable,” Mr Gorman said in conclusion. “The charade may have worked. But the evidentiary hearing, like a poker showdown, is where gaming skills collide with The facts, and at the end of it, all the tricks are revealed and the cards remain exposed.
He added: “The court, after considering the facts of this case in light of the law, sees the papers for what they are and concludes that this raw deal will not prevail over the signature of the probate commissioner.”
This story was originally published by The Associated Press and includes previous reporting by AP writer David Bauder.