The Murdoch family are embroiled in a real-life Succession plotline, proving that life really does imitate art.
Rupert, 93, and four of his children — Lachlan, James, Elizabeth and Prudence — have travelled to Reno, Nevada where a closed courtroom is left with the task of deciding the future of the media juggernaut and a multi-billion dollar family trust.
Basically, the senior Murdoch wants to ensure the future of his media empire after his death, and wants his eldest son, Lachlan, to be left in charge of making that happen.
Lachlan is currently at the helm of the family business after taking over from Rupert in November. However, decades-old legalities could threaten his leadership once his dad passes.
While the Succession-esque legal drama has been ongoing behind closed doors for months, it only became public knowledge in July when the New York Times obtained confidential court documents.
What’s going on with the Murdoch family trust?
In the immediate aftermath of Rupert’s divorce from his second wife and the mother of two of his children Anna Murdoch in 1999, some interesting clauses were added to the family trust.
Instead of seeking a larger chunk of his fortune, Anna fought to ensure that Murdoch’s four children (two of which were not her own) would split his shares in the media empire equally in the event of his passing.
Basically, Anna wanted to protect the children from any decisions Rupert and his then-future, now-ex wife Wendi Deng wanted to make. This means that the two children Wendi and Rupert share have equal access to the money, but don’t have power to control the family business.
But the most important part about this 1999 ruling is that the trust clause was “irrevocable” — something that Rupert and Lachlan are now fighting tooth and nail to change.
What does Rupert want?
Back in November, Rupert launched legal action to revoke the trust and give Lachlan total control. Understandably, the other three Murdoch children are vehemently opposed to this.
Rupert argues that the success of the multi-billion dollar media empire relies on its right-wing tilt, and claims that the three other children may try to influence the editorial and political tone of the company.
This is a fair concern to have, especially considering James famously quit the family business in 2019 “due to disagreements over certain editorial content published by the company’s news outlets and certain other strategic decisions” including the “ongoing denial of climate change.”
But unfortunately for Rupert, it’s not quite that simple in the eyes of the law.
What needs to happen to revoke an irrevocable trust?
The trust can only be changed if it is in the best interest of all beneficiaries, which is clearly not what the other three Murdochs believe.
Basically, to overturn the clause, Rupert will need to convince a judge that James, Elizabeth and Prudence — despite being sound of mind and body — are not acting in their own best interests. He must prove that he is acting in good faith, and for the sole benefit of all of his heirs.
While Rupert has some of the world’s best legal representation — including former US Attorney General Bill Barr — it seems unlikely that he will win this one.
Who are the Murdoch children?
Lachlan, the most well-known Murdoch child, is obviously the one who is in charge of the empire currently. Oh, and he’s also married to Sarah Murdoch, who famously messed up the series finale of Australia’s Next Top Model (irrelevant, but always worth reminiscing).
On the other hand, James has been the most outspoken about his family after sensationally quitting in 2019 due to what he saw as questionable ethics. He now manages his investment fund, but from 2015 to 2019, he shared responsibilities with Lachlan. He is now reportedly not on speaking terms with Rupert or Lachlan.
Elisabeth has spent years positioning herself as “Switzerland”, and keeps a good relationship with everyone. Professionally, she runs a movie studio aptly named Sister.
And finally, Prudence is the fourth Murdoch child that we all forget exists. She’s the eldest and has remained largely removed from the spotlight and the family business. Good for her, honestly. Respect your peace, babe.
James, Elizabeth and Prudence were all absent from Rupert’s wedding to his fifth wife, Elena Zhukova, last month.
Chloe and Grace Murdoch are Rupert’s other two children, who he shares with his third wife Wendi Deng. They have equal equity but no voting power.
What happens if Rupert loses?
If Rupert loses his legal battle, or passes before a verdict can be reached, the trust will remain unchanged.
This could spell disaster for Lachlan.
“Lachlan wants to keep his job, that’s what this is about,” author Michael Wolff, an expert in the family’s empire told the ABC. “Lachlan will lose his job when his father dies as things now stand – the entire legacy will be overhauled as soon as Rupert dies.”
The other three children have previously suggested other solutions such as Lachlan and Rupert buying out their shares, but these negotiations have always fallen through.
Assuming they don’t just have Lachlan buy them out, the other three children could form a united front and moderate the organisation’s editorial and political tone.
Either way, the Murdoch family drama is set to be spicier than a season finale of Succession for the foreseeable future.
Lead image: Getty Images
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