A Nevada commissioner has ruled against Rupert Murdoch’s bid to change his family trust to consolidate control of his media empire in the hands of his son Lachlan, the New York Times reported, citing a sealed court document.
Nevada commissioner Edmund Gorman concluded in a decision filed on Saturday (US time) that Murdoch and son Lachlan, who is the head of Fox News parent Fox Corp and News Corp, had acted in “bad faith” in their effort to amend the irrevocable trust, the Times reported.
Rupert Murdoch (right) wants son Lachlan to control his empire in the future.Credit: AP
The trust currently would divide control of the company equally among Rupert Murdoch’s four oldest children – Lachlan, James, Elisabeth and Prudence – after his death.
In his opinion, Gorman said the plan to change the trust was a “carefully crafted charade” to “permanently cement Lachlan Murdoch’s executive roles” inside the empire “regardless of the impacts such control would have over the companies or the beneficiaries” of the family trust, the Times said.
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A lawyer for Rupert Murdoch, Adam Streisand, said they were disappointed with the ruling and intended to appeal, the Times reported.
The high-stakes battle is set to determine the fate of one of the world’s most influential conservative media businesses and potentially shift the direction of an expansive media network that includes Fox News, The Wall Street Journal and The Australian.
Losing the case would mean that James Murdoch – who has previously held fundraisers for President Joe Biden and was one of 88 corporate leaders who recently signed a letter endorsing Kamala Harris to replace him – will be able to work with Prudence and Elisabeth to take the business in a more moderate direction.
Lachlan is now the chairman of News Corp, and the executive chairman and chief executive of Fox Corporation, following his father’s decision to stand down last year.
