At the top of Fox News sits Lachlan Murdoch alone. He emerged victorious Monday from a bitter family legal battle, securing control of the Murdoch media empire that includes both Fox News and The Wall Street Journal after his three more-liberal siblings agreed to cut ties with the family business for more than $3 billion.
The settlement ended litigation over the Murdoch Family Trust and removes any threat to the conservative direction of Fox News, which had faced potential changes if Lachlan’s left-leaning siblings gained control after their 94-year-old father’s death.
James and Elisabeth Murdoch and Prudence MacLeod will cease to be beneficiaries in any trust holding shares in News Corp or Fox Corp. They will receive cash consideration funded by the sale of approximately 14.2 million shares of News Corp Class B common stock and approximately 16.9 million shares of Fox Corp Class B common stock.
Each of the three departing siblings will receive around $1.1 billion once the $3.3 billion deal closes within six months, The New York Post reported.
A new trust called LGC Holdco LLC will be established for Lachlan Murdoch and his younger sisters Grace and Chloe Murdoch, the daughters of Rupert Murdoch and his ex-wife Wendi Deng. Lachlan will control all votes in LGC Holdco, which will hold controlling stakes in both companies.
“People forget how many children Rupert Murdoch actually has and how those children have mothers,” a source close to events told Deadline. Grace and Chloe never had voting rights under the previous family trust structure, but their economic interests played a vital role in the resolution.
“News Corp’s board of directors welcomes these developments and believes that 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,” a spokesperson said.
Fox Corp. stock closed at an all-time high of $62.49 Monday. News Corp shares closed at $29.94, less than $1 off its record high of $30.75. The value of family stock has increased 68 percent, or $3.4 billion, since Lachlan took control in 2019.
The settlement came after a Nevada probate court commissioner rebuked Rupert Murdoch’s effort to amend what was supposed to be an irrevocable family trust. The original trust ensured four of his children had equal say in governing Fox Corp and News Corp after his death.
James and Elisabeth Murdoch have been known to hold vastly different political views from Lachlan and his father.
The three departing siblings will be required to sell any personal holdings in either Fox Corp or News Corp. They will be subject to a long-term standstill agreement preventing them and their affiliates from acquiring shares of either company.
After the settlement, the Murdochs will hold approximately 33.1 percent of News Corp voting shares and 36.2 percent of Fox Corp voting shares. Voting control of both companies’ shares owned by LGC Holdco will rest solely with Lachlan through his appointed managing director.
Rupert Murdoch will continue in his role as Chairman Emeritus of both companies. A term of 2050 has been established for the new trust structure.
The resolution ensures Fox News will continue its current editorial direction under Lachlan’s leadership. The network has been the cornerstone of Fox Corp, generating substantial revenue and maintaining its position as the top-rated cable news network.