Lachlan Murdoch secures control of family empire after $3.3 billion payout to siblings

A years-long succession battle within Rupert Murdoch’s conservative media empire has concluded, with his son Lachlan Murdoch set to take sole control of the family’s vast news holdings after a multi-billion dollar deal.

The agreement, announced on Monday (today), ensures that Fox News, The Wall Street Journal, and The New York Post will continue their conservative editorial direction after the eventual death of 94-year-old Rupert Murdoch.

$3.3 billion buy-out

Under the deal, Lachlan Murdoch will control a new family trust while his older siblings – Prudence MacLeod, Elisabeth Murdoch and James Murdoch – will cease to be beneficiaries of any trust holding shares in Fox or News Corp. Instead, the three will each receive around $1.1 billion (€937 million) from the sale of approximately 14.2 million News Corp shares and 16.9 million Fox Corp shares.

This effectively removes their influence over the political orientation of the conglomerate, while providing them with substantial liquidity to exit the business.

Industry observers have described the settlement as both a victory and a costly concession for Rupert Murdoch, whose overriding priority was to secure control for his chosen successor.

End of a bitter feud

The Murdoch family’s internal struggle over succession had been ongoing for years and served as partial inspiration for the hit HBO series Succession. Behind closed doors, the dispute centred on the structure of the family trust, which originally gave all four of Mr Murdoch’s eldest children equal voting rights over the company’s future.

In late 2023, Rupert and Lachlan Murdoch sought to change those terms in order to concentrate power in Lachlan’s hands. However, a Nevada court ruled they had acted in “bad faith”. Monday’s announcement represents a final compromise, ending litigation and paving the way for Lachlan’s undisputed leadership.

Continuity at Fox and News Corp

Lachlan Murdoch, who has been running the business since Rupert stepped back in September 2023, is currently chair of News Corp, which owns titles including The Wall Street Journal and The Times. He is widely considered the most politically conservative of Mr Murdoch’s children and is expected to maintain the company’s existing editorial line.

News Corp said in a statement: “The leadership, vision and management by the company’s chair, Lachlan Murdoch, will continue to be important to guiding the company’s strategy and success.”

Meanwhile, James Murdoch has distanced himself from the business in recent years, citing disagreements over Fox News’ editorial positions on climate change and its coverage of the 2020 US election.

Billions at stake

The payout to Rupert Murdoch’s three eldest children underscores both the scale of the family empire and the price of ensuring Lachlan’s uncontested control. At roughly $3.3 billion (€2.8 billion) in total, the deal represents one of the most expensive family succession settlements in corporate history.

For Rupert Murdoch, who has long described his companies as a “family business”, the deal secures his desired legacy: Lachlan Murdoch as the unchallenged custodian of one of the world’s most influential media empires.