A battle between Rupert Murdoch and his children over the future of his media empire began this week, with observers trying to force a court to make the secret dispute public.
Murdoch wants to change the structure of the family trust to give his eldest son Lachlan all voting power – a move that, if successful, would mean his other adult children, Prudence, James and Elizabeth, would lose voting rights.
Of his children, Lachlan is most aligned with his father politically, but his younger siblings have expressed doubts about the direction of the company, especially during Donald Trump's presidency.
Both sides have hired high-profile lawyers to handle the case: Murdoch is working with former U.S. Attorney General William Barr, who is helping rewrite the trust agreement, and Adam Streisand, the lawyer who represented the estates of Michael Jackson and Britney Spears.
The trial will have huge implications for Murdoch's holdings, which include Fox News and The Wall Street Journal, but he is fighting to have the trial played out largely out of the public eye.
The only information available to the public is key dates for the trial, which is taking place in Reno, Nevada, and is posted on the court's website. WebsiteThe trial is scheduled for a status conference on September 9th, followed by a series of evidentiary hearings from September 16th.
A coalition of six national news organizations – The Associated Press, CNN, NPR, New York News, Reuters and The Washington Post – filed a request to access and make public the court records.
“The fate of the Murdoch family's vast fortune and vast media empire is of deep public interest, and the public also has an interest in ensuring that the courts administer justice in a proper and fair manner,” the request reads. NBC News.
the WebsiteThe court said it had “received numerous media inquiries” in relation to the trial but that “the court file relating to this matter remains confidential and sealed in all matters.”
“Furthermore, all court hearings regarding this matter are closed to the public,” the website states. “No other public information regarding this matter is available through the Court.”
As the trial begins, hedge fund Starboard Value, a prominent investor in News Corp., parent company of dozens of media companies including The Wall Street Journal, The Times of London and book publisher HarperCollins, is seeking to send a message to Murdoch that his family has too much power over the company.
It's being spearheaded by Starboard Value founder and activist shareholder Jeffrey Smith. effort The move is aimed at reducing Murdoch's voting power in the company. Murdoch currently owns 14 percent of News Corp. shares but, through dual-shareholding, he holds 41 percent of the company's voting power.
Starboard Value's shareholder proposal argues that Murdoch should divest his dual holdings, which will ultimately be passed on to his children, because political disagreements within his family “have the potential to paralyze the strategic direction of New Corp.”
“I don't see why their views should carry more weight than the views of other shareholders,” Smith said. Written According to the New York Times, the proposal includes:
Even if approved, the company's board could decide not to agree to the proposal, but Smith said the proposal would “send a clear and direct message” to the board about its concerns about the Murdoch family's power over the company.
