Murdoch Family Reaches Settlement in Succession Dispute, Lachlan to Solidify Control
NEW YORK – The Murdoch family has reached a settlement resolving a protracted dispute over the future of media giants News Corp and Fox Corp., paving the way for Lachlan Murdoch to assume greater control. The agreement, finalized after a family battle largely fought behind closed doors, will see Rupert Murdoch remain as Chairman Emeritus.
According to filings, each of the three Murdoch siblings – Lachlan, James, and Grace Murdoch, and Chloe Murdoch – will receive just under $500 million from the sale of their holdings. The New York Times estimates the total value of the settlement, including loans and other financial arrangements, at approximately $1.1 billion per sibling.
As part of the agreement, the siblings are required to sell any minimal personal holdings in Fox and news Corp.and are subject to a long-term standstill agreement preventing them, and their affiliates, from acquiring shares or taking certain actions regarding the companies.
The settlement will dilute the Murdoch family’s voting power to approximately 33.1 percent of News Corp’s Class B common stock and less than 0.1 percent of its Class A common stock, and approximately 36.2 percent of Fox Corporation’s Class B common stock and less than 0.1 percent of its Class A common stock.
new trusts will be established for Lachlan, Grace, and Chloe Murdoch, with Lachlan controlling the voting rights.
“News Corp’s board of directors welcomes these developments and believes that the leadership, vision and management by the Company’s Chair, Lachlan Murdoch, will continue to be crucial to guiding the Company’s strategy and success,” News Corp. stated, with Fox releasing an identical statement.
the dispute stemmed from Rupert Murdoch’s attempt to amend the family trust to ensure Lachlan’s succession. His other children opposed the change, leading to a legal challenge in Nevada. The Nevada court ultimately ruled against altering the irrevocable trust. Details of the family conflict were revealed in stories published by The New York Times Magazine and The Atlantic, the latter featuring extensive contributions from James Murdoch.
