Fox News' fate in limbo, trial against Murdoch family begins : NPR

The future of Fox News — one of the most influential players in television and conservative politics — could be determined, improbably, by a probate court official in Reno, Nevada. Absent a last-minute settlement, the trial will begin on Monday.

The proceedings broadly relate to the settlement of 93-year-old Rupert Murdoch's global media empire, which also includes The Wall Street Journal, The Times of London, Australian and this New York Post,

Murdoch wants to amend his trust to hand over full control to his eldest son Lachlan, who currently runs his companies. Lachlan's three eldest siblings – who are set to share control of the business with him after their father's death – oppose this change. The two youngest children – Rupert Murdoch's daughters from his third marriage – share equally in the financial bounty, but have been promised no control.

The family's conflicts are Shakespearean and inspired by the HBO drama Succession; at times the narrowness can seem Seinfeldian. The court battle is about money and power, but also whether Fox News must remain relentlessly partisan and right-wing as part of a business plan to get the best results.

Lachlan's siblings appear less drawn to the far-right ideology. His only brother, James, has become a critic of the pro-Trump and often anti-news populism adopted by the network.

“If they change direction and move forward [Fox News] “If it goes in the direction of the CNN format, or goes in the middle, it will lose its identity, lose viewers and lose revenue,” says Joe Perronin, a veteran network news executive who served as president of Fox News in its early stages in the mid-1990s.

“I'm saying this as a journalist, and I want to see this change,” says Perronin. “They have been the most divisive entity in politics over the last 30 years. If it wasn't for Fox News, we'd still have mudslinging, but it wouldn't be like it is today.”

Settlement to Avoid a Nasty Divorce Trial

Murdoch's petition to change the terms of the trust was the first to be cited. new York Times And three people connected to various interested parties later confirmed this to NPR. Those people spoke to NPR on the condition that they not be named, because the probate commissioner has ruled that the proceedings — and even the identities of the parties involved — are confidential.

The probate officer ruled against a motion put forward by NPR and other news organizations to make the trial public.

The legal battle stems from a fateful decision a generation ago: Murdoch agreed to set up an irrevocable family trust to avoid a dispute over his assets after he left his second wife, Anna Torv Murdoch Mann. He also gave his four eldest adult children an equal share and equal control over his estate after his death.

In exchange for the settlement — and a payment of $110 million — Murdoch Mann agreed to drop a long-running battle over his stake in his media holdings.

(Rupert Murdoch's two younger daughters from his third wife, Wendi Deng, were eventually given full financial equality with their siblings, but no voting control in the trust. He had no children with his fourth wife, Jerry Hall. He married his fifth wife earlier this year.)

Rupert Murdoch believes Lachlan will remain in his position

After years of corporate competition between James and Lachlan, the older brother prevailed: Lachlan is now the executive chairman of the empire's television arm Fox Corp. and chairman of publishing arm News Corp.

News Corp.'s stock price has rebounded in the five and a half years since Lachlan took over. Fox Corp.'s price has been volatile. Both branches have been mired in costly and debilitating legal scandals, including a major phone-hacking incident involving News Corp.'s British tabloids and multiple defamation suits involving Fox News.

In Reno, Rupert Murdoch is arguing that Prudence, Elizabeth and James are trying to soften the network's ideology, which would reduce its appeal among its right-wing audience. Rupert and his four eldest children are expected to appear in court this week.

People who work for Rupert Murdoch say he is angered by the controversy.

He believes he was the sole force that drove the creation of this $32 billion continent-hopping media juggernaut from a single newspaper left by his father in Adelaide, Australia; that he should determine who controls the companies, although they are publicly traded, with authority and to avoid confusion and litigation after his death; that his children were well cared for when they received $2 billion from the sale of key Fox entertainment assets to Disney in 2019; and that he and Lachlan have skillfully led the twin television and publishing companies since that sale.

The Wall Street Journal Recently Reported After that sale to Disney, Rupert Murdoch asked each of his four eldest children to give him more than $100 million. Lachlan, Prudence, and Elizabeth did so. James refused. (Journal (It is ultimately controlled by Lachlan Murdoch; its reporting has not been publicly challenged.)

Over the years, several of the children have come and gone from their father's side. Rupert especially pitted two boys against each other. Prudence, his eldest daughter from his first wife, often served as an advisor to her father as he abandoned any corporate ambitions. Elizabeth attended the Super Bowl with Rupert (and Elon Musk) in early 2023. She didn't attend her father's wedding earlier this year. Neither did James. By then, they were already on opposing sides in court.

Other Murdoch kids question Rupert and Lachlan's leadership

James and his wife Kathryn Murdoch have emerged as strong philanthropists for climate change, voting rights and other liberal causes. They have advocated for Fox to be closer to the centrist and less confrontational Sky News in Europe, which James oversaw when he came under Murdoch's purview. James has criticized Murdoch's Australian publications over their coverage of global warming, and Fox over its behavior toward the 2020 election and the January 6 siege of Congress.

Those connected to James, Elizabeth and Prudence say the companies have suffered enormous losses under their father and brother's rule. The scandals that have engulfed the empire on both sides of the Atlantic have so far resulted in losses of more than $2 billion. The litigation continues.

And they make another argument: that Fox News’s embrace of Trumpist conservatism threatens their news channel’s reputation for journalism.

Last year, Rupert and Lachlan agreed that Fox Corp. would pay a record $787.5 million to settle a defamation lawsuit filed by Dominion Voting Systems against Fox News over false claims of fraud in the 2020 election. The evidence made public included emails in which father and son gave their blessing to network executives' decision to include former President Donald Trump's falsehoods to avoid alienating viewers.

Rupert Murdoch officially stepped aside from active control of his companies last year, a few months after the deal. He has told his colleagues that his move was simply to ensure clarity of corporate strategy and to stick to what works.

In Reno, Probate Commissioner Edmund J. Gorman Jr. concluded that Rupert Murdoch has the right to modify the trust if it works for the benefit of all his heirs. Gorman must decide whether the media tycoon has made a good faith argument that that is the purpose of his proposed changes.

Previous suggestions for compromises have failed. It would be financially difficult for Lachlan to buy out his siblings. And the others, if they stick to their voting stakes, may opt to sell their assets rather than retain them in case Lachlan contests an election. Possibly, after Lachlan tries to end their influence by colluding with Rupert Murdoch, the other three children may opt to remove him as corporate chief and replace him with someone else.