Murdoch Family Trust: The real battle over succession has yet to begin

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Murdoch Family Trust: The real battle over succession has yet to begin
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When Lachlan Murdoch, the eldest son of media titan Rupert Murdoch, was named the sole chairman of News Corp Thursday, the announcement put to rest immediate questions about who will run News Corp and Fox Corp: a sprawling media empire that includes some of the most powerful brands in the world. But the executive transition does not settle another potential power play that could occur upon Rupert Murdoch’s death, as framed by a document called the Murdoch Family Trust. It is the vehicle through which the elder Murdoch controls News Corp and Fox Corp, through a roughly 40% stake in voting shares of each company.

NEW YORK - When Lachlan Murdoch, the eldest son of media titan Rupert Murdoch, was named the sole chairman of News Corp Thursday, the announcement put to rest immediate questions about who will run News Corp and Fox Corp: a sprawling media empire that includes some of the most powerful brands in the world.

The Reno, Nevada-based trust lays out a scenario through which a potential takeover could occur. It is the vehicle through which the elder Murdoch controls News Corp and Fox Corp, through a roughly 40% stake in voting shares of each company. Murdoch also holds a small amount of shares of the companies outside of the trust.

The Murdoch Family Trust has eight votes: four of which are controlled by Murdoch, and the remaining four controlled by the four children from his first two marriages. Murdoch’s youngest daughters Chloe and Grace, from his third wife Wendi Deng, do not have voting rights in the trust. In addition to shares in News Corp and Fox, the trust also includes the Cruden family farm near Melbourne and Murdoch’s art collection, according to a January 2023 Financial Times report.

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