Rupert Murdoch's eldest son gets control of media empire in $3.3 bn deal

The $3.3 billion settlement ends years of bitter family succession battle, dissolves the old Murdoch trust, and hands Lachlan sole power over Fox Corp and News Corp while siblings take cash exit

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The long-running succession war within the Murdoch empire has reached its conclusion. Rupert Murdoch’s eldest son, Lachlan Murdoch, will take control of the family’s global media holdings after a $3.3 billion settlement that ends years of disputes and courtroom battles.

 

The deal secures Lachlan’s leadership over the empire, which includes Fox News, The Wall Street Journal, The Times of London, and The New York Post, and ensures the continuation of Rupert Murdoch’s conservative editorial legacy after his death. At 94, the media mogul has once again ensured that his empire maintains ideological consistency.

Who gets what in the groundbreaking deal

Under the settlement, Prudence MacLeod, Elisabeth Murdoch, and James Murdoch, Lachlan’s siblings, will each receive $1.1 billion in exchange for relinquishing their stakes. Their holdings, previously managed under the Murdoch Family Trust, represented around 80 per cent of their combined market value.

 

The original trust, created during Rupert Murdoch’s divorce from his second wife Anna Mann, will now be dissolved. A new trust will replace it, structured around Lachlan and his younger half-sisters, Grace and Chloe Murdoch, Rupert’s daughters from his marriage to Wendi Deng. While Grace and Chloe will be equal financial beneficiaries, only Lachlan will wield voting power. 

Selling shares to settle the feud

To finance payouts, the Murdoch companies are selling 16.9 million Fox Class B shares and 14.2 million News Corp Class B shares, raising more than $1.4 billion. This move dilutes the new trust’s voting stake from about 40 per cent to one-third in both Fox Corp and News Corp.

 

The remaining shares will be transferred to LGC Holdco, LLC, a holding company controlled by trusts for Lachlan, Grace, and Chloe. This arrangement gives Lachlan’s trust 36.2 per cent of Fox Class B stock alongside a smaller holding of Class A shares, cementing his dominance.

How the Murdoch family feud began

The Murdoch succession battle was as much ideological as it was financial. James Murdoch had been increasingly vocal in criticising Fox News and other Murdoch outlets, citing their coverage of the January 6 Capitol attack, unwavering support for Donald Trump, and frequent dismissal of climate change.

 

Rupert and Lachlan, however, shared a firm belief in conservative editorial principles. Arguing that stability and consistency were vital to keep audiences loyal, they attempted to sideline James and his sisters. At one point, Rupert and Lachlan even sued James, Elisabeth, and Prudence in a Nevada court to cut them out of the trust, a move the siblings saw as a betrayal.