Murdoch succession battle to take place in Nevada courtroom By Reuters

By Dawn Chmielewski

RENO, Nevada (Reuters) – A behind-closed-doors battle for control of Rupert Murdoch’s media empire begins on Sept. 16 and could determine the future of Fox News and the Wall Street Journal.

Murdoch, 93, is trying to change the terms of the family’s irrevocable trust to ensure that his newspapers and television networks remain under the control of his eldest son and chosen heir, Lachlan Murdoch, according to the New York Times, which obtained a sealed court document detailing the estate drama.

Reuters and other news organizations are seeking access to sealed court records and open hearings in Reno, Nevada, before Probate Commissioner Edmund J. Gorman Jr.

The trust is laying out a scenario for how a potential takeover could take place, according to a source who has seen the documents. The trust is the vehicle through which the elder Murdoch controls News Corp (NASDAQ: ) and Fox, with about 40 percent of each company’s voting stock. Murdoch also owns a small amount of shares in companies outside the trust.

Upon Rupert Murdoch’s death, the voting shares in News Corp and Fox will be transferred to his four eldest children – Prudence, Elisabeth, Lachlan and James. Three of the heirs could potentially override a fourth vote, setting off a battle for the future of the companies, even though Lachlan Murdoch runs Fox and is the sole chairman of the companies. News Corp.

Rupert Murdoch’s proposed change to the trust would block any interference by three of Lachlan’s brothers, who are more politically moderate, the Times reported, citing a sealed court document.

Lachlan Murdoch is seen as ideologically aligned with his conservative father. James Murdoch, who has donated to progressive political groups, resigned from News Corp’s board in 2020, citing disagreements over editorial content. James also criticized the US media for amplifying misinformation about the 2020 election results ahead of the January 6 attack on the Capitol. He hosted a fundraiser for US President Joe Biden in 2021 before the Democrat ended his re-election campaign.

A hearing to determine whether Rupert Murdoch’s proposed changes to the trust would benefit his heirs will take place in a Reno courtroom, far outside the conglomerate’s New York, Los Angeles, London and Sydney media hubs. .

“They’re going to have to show that these changes are made in good faith,” said Shane Jasmine Young, a Nevada attorney who specializes in estate planning. This means that showing any changes would not “sacrifice the rights or discriminate against any of the parties that the trust was intended to protect”.

A group of news organizations, including the New York Times, CNN, The Associated Press, National Public Radio, The Washington Post and Reuters, have asked to intervene in the matter, arguing that the court should unseal the records and provide access to the proceedings . .

“While some litigants may desire secrecy, and some courts grant that desire, this level of sealing does not pass constitutional muster,” lawyers for the News Organization Access Coalition wrote in a brief to the court, arguing that the First Amendment seeks civil court proceedings. and the records be open to the public.

News organizations say the public has huge interest in which of Murdoch’s children will succeed him at the helm of the influential media empire, an outcome that will affect thousands of jobs, millions of media consumers around the world and the political landscape.

Spokesmen for Lachlan, James and Elisabeth Murdoch declined to comment. A spokesman for Rupert Murdoch referred questions to his lawyer, who did not respond to a request for comment. A lawyer representing James, Elisabeth and Prudence could not be reached for comment.

“The reason this is interesting is because of the outsized role that Fox (News) has played in the political landscape, in the U.S. and around the world,” said Paul Hardart, director of the Entertainment, Media and Technology Program at the University’s Stern School from New York. of business. “I think this is a reflection of the future of not only the business, but how conservative media is managed going forward.”