Rupert Murdoch’s Bid to Restructure Family Trust for Fox News Control Rejected by Nevada Court

A Nevada probate commissioner has ruled against Rupert Murdoch’s attempt to amend his family’s trust to give his son, Lachlan Murdoch, greater control over the family’s media empire, which includes Fox News.

The ruling, issued by Probate Commissioner Edmund J. Gorman Jr. of the Second Judicial District Court, described the effort as a “carefully crafted charade” aimed at cementing Lachlan’s control after Rupert Murdoch’s death.

The decision, first reported by The New York Times, highlights internal family divisions over the future of the multi-billion-dollar Murdoch media empire. Under the current structure, control of the trust is equally shared among Rupert Murdoch’s four adult children — Prudence, Elisabeth, James, and Lachlan. This equal distribution has fueled speculation about potential shifts in Fox News’ editorial stance after Murdoch’s passing, as James and Elisabeth are known to have more moderate political views compared to their conservative-leaning father and brother.

In his 96-page decision, Gorman was critical of the motives behind the proposed trust change, calling it a scheme to “permanently cement Lachlan Murdoch’s executive roles” within the company. He concluded that the effort was “an attempt to stack the deck in Lachlan Murdoch’s favor” and asserted that the court would not allow such a move to prevail. Gorman likened the legal battle to a poker game, stating that “all the bluffs are called, and the cards lie face up.”

The judge also criticized Rupert and Lachlan Murdoch for acting in “bad faith” by attempting to alter an irrevocable trust, a legal arrangement typically designed to remain unchangeable once established. The trust was originally created during Rupert Murdoch’s divorce from his second wife, Anna Murdoch Mann, and was intended to provide all four of their children with equal control over the family’s media empire.

A spokesperson for Prudence, Elisabeth, and James Murdoch welcomed the ruling, expressing hope that the family could now “move beyond this litigation to focus on strengthening and rebuilding relationships among all family members.” The statement signaled a desire to put family unity ahead of further court battles.

Meanwhile, Adam Streisand, a lawyer representing Rupert Murdoch, said his client and Lachlan Murdoch were disappointed with the ruling and plan to appeal. If the appeal proceeds, the matter will move to a district judge, who could either uphold Gorman’s recommendation, send the case back for further review, or issue a different ruling.

The legal battle centers on more than family dynamics — it has significant implications for the future direction of one of the world’s most influential conservative media empires. Fox News, one of the most-watched cable news networks in the US, generated $14 billion in revenue in fiscal year 2024. Critics of Rupert Murdoch’s plan argued that granting Lachlan unilateral control of the trust would solidify Fox News’ conservative editorial stance. Without that control, there is concern that the network’s political direction could shift as James and Elisabeth, who have voiced support for more moderate and progressive causes, may push for changes in the network’s editorial approach.

A former senior Murdoch executive, speaking anonymously to The New York Times, argued that equal control among the four siblings could lead to instability. “This is the end of News Corp,” the former executive said, warning that disagreements among the heirs could make it difficult to maintain a unified direction for Fox News, The Wall Street Journal, and other News Corp properties. “Unless one person runs it, they can’t make decisions, so they will fight over the direction of Fox News.”

Another concern is that the family’s control of the empire could be diluted as a result of infighting, potentially jeopardizing News Corp’s dual-class voting structure, which allows the Murdoch family to maintain 41% of company votes despite owning only 14% of the company’s stock. Some shareholders, including hedge fund Starboard Value, have criticized this arrangement and called for its elimination, arguing that it could paralyze decision-making at the top levels of News Corp.

The unfolding drama surrounding the Murdoch family trust has drawn comparisons to HBO’s hit series Succession, which follows a fictional media family embroiled in power struggles over control of their global empire. Ironically, according to The New York Times, Elisabeth Murdoch’s lawyer had previously sent a “Succession memo” to family members warning them to avoid the very type of internal conflict depicted on the show. Instead, the memo and the ensuing legal battle have brought the real-life saga closer to the plot of the TV series.

Notably, Lachlan was the only one of Rupert Murdoch’s four older children to attend his fifth wedding, which took place earlier this year. This, along with Lachlan’s elevated role as CEO of Fox Corporation and chairman of News Corp, suggests he remains his father’s preferred successor. Rupert Murdoch’s announcement last year that he would step down as chairman of both companies was seen as a strategic move to position Lachlan as the heir to the family business.

The ruling is unlikely to be the final chapter in this story. Commissioner Gorman serves as a “special master” in the case, which means his recommendations can be adopted, modified, or rejected by a district judge. The Murdochs’ legal team has already signaled an intent to appeal, which could prolong the family feud and cast uncertainty over the future direction of Fox News and other media properties.

Additionally, pressure from investors is mounting. Shareholders at News Corp have long criticized the dual-class voting structure that concentrates power in the hands of the Murdoch family. Starboard Value, a hedge fund investor, has argued that handing equal control to four Murdoch children could destabilize News Corp’s operations, leading to internal conflict over major editorial and business decisions.

As the case moves to a district judge, it remains unclear how long the appeal process will take or what ultimate outcome will emerge. If the judge upholds Gorman’s ruling, control of Fox News and other properties would be divided equally among the four siblings, creating a power-sharing dynamic. This could make it harder for any one sibling to control the editorial direction of Fox News, especially since James and Elisabeth have taken more moderate political stances.

If the district judge overturns Gorman’s ruling, Lachlan Murdoch could secure control of the family trust, which would solidify his position as the de facto head of Fox News and News Corp. This would maintain Fox News’ conservative stance and ensure continuity with Rupert Murdoch’s vision for the network.

The Associated Press, the Guardian, and the Washington Post contributed to this report.