'Conservative Heir's Share Consolidation' Murdoch's Testamentary Trust Change Halted by Court

'Media mogul' Rupert Murdoch attempted a unilateral change to the family trust to concentrate shares in his conservative eldest son, but the court has put a stop to it.

Rupert Murdoch. Reuters Yonhap News

Local media, including The New York Times (NYT), reported on the 9th (local time) citing court documents that the Nevada state trust supervisor rejected the family trust change request submitted by Murdoch and his eldest son Lachlan.

In a 96-page opinion submitted on the 6th, Edmund Gorman Jr., the trust supervisor, concluded that Murdoch and Lachlan's attempt to modify the irrevocable trust was done in "bad faith." Currently, the family trust stipulates that upon Murdoch's death, the four children, including Lachlan, will inherit equal shares of the family business and have equal voices in the company's future.

In particular, the trust supervisor described Murdoch's request to change the trust as an attempt to solidify Lachlan's control over the media empire, calling it a "sophisticated masquerade." It was also pointed out that the potential impact on the company and the trust beneficiaries within the family was not considered during this process.

Murdoch, who is 93 years old this year, sought to change the family trust to concentrate shares in his eldest son Lachlan in order to maintain the conservative editorial direction of TV networks and newspapers. However, as they tried to unilaterally modify the irrevocable family trust without anyone's consent, the other children took legal action. Murdoch's other children, James, Elizabeth, and Prudence, are known to have more moderate political views compared to Murdoch and Lachlan.

The NYT stated, "The fight over the family trust is not about money. It is about future control of the world's most powerful conservative media empire," adding, "Murdoch wanted to completely hand over his media empire to his eldest son Lachlan while maintaining Fox News's right-wing orientation." Murdoch, originally from Australia, has built an influential media empire including the American Fox News, Wall Street Journal (WSJ), New York Post, and the British The Sun and The Times.

This legal battle is seen as exposing the deep conflicts within the Murdoch family to the public. James, Elizabeth, and Prudence said in a statement, "We welcome the decision" and expressed hope "to focus on strengthening and rebuilding relationships among all family members beyond this lawsuit." Meanwhile, Murdoch's legal team announced that Murdoch and Lachlan were disappointed with the ruling and plan to appeal.