Murdock Family Settles Legal Dispute Over Media Holdings
On Monday, the Murdoch family reached an agreement in their legal struggle for control over significant media assets, including Fox Corp. and News Corp.
Lachlan Murdoch, who serves as the executive chairman and CEO of Fox Corp. and chairman of News Corp, will continue to lead the media conglomerate established by his 94-year-old father, Rupert Murdoch.
A new trust, named LGC Holdco LLC, will be created to benefit Lachlan and his younger sisters, Grace and Chloe Murdoch.
In this trust, Lachlan Murdoch holds comprehensive voting control, which includes a considerable stake in Fox Corp., the parent company of the prominent cable network Fox News. News Corp’s portfolio consists of assets like the New York Post and the Wall Street Journal. The deal is set to be finalized soon.
As part of the settlement, Lachlan’s older siblings—Prudence MacLeod, Elizabeth Murdoch, and James Murdoch—will no longer be beneficiaries of the trust that held shares in News Corp and Fox Corp.
Rupert Murdoch will retain his title as honorary chairman for both companies.
A spokesperson for News Corp expressed that the board is optimistic about these developments and recognizes the importance of Lachlan’s leadership in steering the company’s strategic direction and success.
On the stock market, Fox Corp. shares hit a record high of $62.49 on Monday, while News Corp’s shares closed at $29.94, having dipped from a previous high.
Since Lachlan took the helm in 2019, the value of family shares in the trust has appreciates 68%, equating to about $3.4 billion.
The new trust established for the siblings will receive cash proceeds from the public sale of approximately 14.2 million shares of News Corp Class B common stock and about 16.9 million shares of Fox Corp.’s Class B common stock.
Reports indicate that the three older siblings could receive around $1.1 billion when this $3.3 billion deal wraps up within the next six months.
Both companies also need to divest some personal holdings and adhere to long-term suspension agreements that will limit their ability to undertake certain actions regarding the companies.
This legal resolution comes after Rupert Murdoch sought to adjust the family’s trust to ensure Lachlan would gain control posthumously, although courts in Nevada had rejected modifications to the family trust.
