Lachlan Murdoch Snares Voting Control of Fox, News Corp. in Settlement
The Murdoch Family Resolves Dispute Over Control of Fox Corp. and News Corp.
The Murdoch family has finally settled a long-standing dispute regarding the control of voting shares that govern both News Corp. and Fox Corp. The resolution of the conflict will see Lachlan Murdoch taking control of the voting shares while buying out the interests of Rupert Murdoch’s other children who had contested their father’s attempts to restructure the oversight of both corporations.
Both Fox Corp. and News Corp. announced on Monday that all litigation related to Rupert Murdoch’s efforts to transfer control of the family’s shares to Lachlan has been terminated. Prudence MacLeod, Elisabeth Murdoch, and James Murdoch, who opposed their father’s actions, will no longer be beneficiaries in the family’s holding trusts within the conglomerates.
Rupert Murdoch’s maneuvers seem to solidify his goal of maintaining the conservative stance of his media empire, especially at Fox News, which is a key asset of Fox Corp. James Murdoch and Elisabeth Murdoch have been known to have differing political views from Lachlan, with James supporting causes that do not align with the opinions expressed on the cable network.
Initially, Murdoch tried to amend an irrevocable family trust that granted equal governance rights to his four children – Lachlan, James, Prudence, and Elisabeth – over the operations of Fox Corp. and News Corp. However, a probate court commissioner in Nevada rejected this move, prompting Rupert Murdoch to consider an appeal.
In the settlement, trusts representing James, Elisabeth, and Prudence will sell a total of 16,926,837 shares of Fox Corp.’s Class B common stock, while a similar amount of shares from News Corp.’s Class B stake will also be offered.
According to filings with the SEC, each of the three children will receive around half a billion dollars from the transaction. They will be required to divest any personal holdings in either Fox Corp. or News Corp and will be prohibited from purchasing shares in either company under a long-term agreement.
Following the sale, the Murdochs’ voting power in both companies will be reduced, with approximately 33.1% of News Corp.’s voting shares and 36.2% of Fox Corp.’s voting shares being held by the family.
