The Murdochs have resolved their years-long legal battle over the family’s trust, which holds control to the future of the News Corp. and Fox Corporation media empire.
The settlement will see new trusts established for Lachlan Murdoch, Grace Murdoch and Chloe Murdoch. Prudence MacLeod, Elisabeth Murdoch and James Murdoch will cease to be beneficiaries in any trust holding shares in News Corp or Fox Corporation.
The departing beneficiaries will receive cash, which will be funded from the proceeds of a sale of 14.2 million shares of News Corp Class B common stock and approximately 16.9 million shares of Fox Corporation Class B common stock previously held by the MFT.
Meanwhile, a holding company will be established for the remaining trust beneficiaries and own all of the remaining Fox and News Corp. shares previously held by the MFT, which will consist of 36.2% of Fox’s Class B common stock, 31% of News Corp Class B common stock and less than 0.1% of the two companies’ Class A common stock.
Under the terms of the deal, Prudence, Elisabeth and James will each receive $1.1 billion for their shares.
In the six month period following the transactions, the trio will also sell their “de minimis personal holdings” in Fox and News Corp. to ensure they have no direct or indirect interest in the companies and will be subject to a long-term standstill agreement preventing them and their affiliates from acquiring shares of Fox and News Corp. and taking certain other actions with respect to the companies.
Lachlan will have sole voting control of LGC Holdco through his appointed managing director. The term of the trust will be extended through 2050. Rupert Murdoch will continue in his role as chairman emeritus.
The fight between the Murdochs first began back in late 2023 after the 93-year-old media mogul filed paperwork in an attempt to to alter the family’s irrevocable trust in a bid to give sole power to his eldest son, Lachlan, after his death. Rupert reportedly feared a coup from his more liberal children — saying in messages it would be a “disaster” if his companies “fell into the wrong hands.”
That plan, ironically dubbed “Project Family Harmony,” failed in December, when a Nevada probate commissioner ruled Rupert acted in “bad faith” toward the trust’s beneficiaries.
The Murdoch Family Trust (MFT), which was established by Rupert in 1999 following his divorce from Anna Torv, gave Lachlan, Elisabeth, Prudence and James equal voting control over Fox Corp. and News Corp. upon Rupert’s death. Murdoch’s two youngest daughters with Wendi Deng, Chloe and Grace, did not have voting rights in the trust, but were also listed as beneficiaries.
In separate statements on Monday, News Corp and Fox said their boards of directors welcome the resolution and believe the “leadership, vision and management by the Company’s Chair, Lachlan Murdoch, will continue to be important to guiding the Company’s strategy and success.”
More to come…
