A unique court case is getting under way in Nevada this week. At stake is the future of the Murdoch empire. The case, which begins on September 17 local time, is scheduled to run (in secret) for two weeks, and sometime after that the Reno Nevada County Probate Commissioner will make what will probably be the biggest decision of their career.
The drama centres on a Murdoch family trust that was agreed on in 1999, when Rupert was divorcing Anna. Instead of seeking a larger share of his fortune, she insisted on the setting up of an irrevocable trust, which meant Rupert’s four existing children (Prudence, Elisabeth, Lachlan and James) would have one share each after he died. Anna’s priority was to secure the long-term futures of the four children and protect them against any future action by Rupert’s new wife, Wendi Deng. So, when Rupert later had two children with Wendi, they had equal access to the money, but no power inside the company.
Last November, Rupert initiated legal action to revoke this “irrevocable” trust, to give his chosen successor, Lachlan, full control. His justification was that the viability of the company rests on its right-wing appeal and that the other three might seek to change this.
