The fund was originally set up to give equal control of Rupert Murdoch’s companies to his four eldest children upon his death, the Times reported | Photo: Wikimedia Commons
Rupert Murdoch and four of his children appeared behind closed doors Monday before a Nevada probate commissioner for a hearing aimed at determining who will take over his media empire after Murdoch’s death.
The hearing, which resumes on Tuesday and is set to last into next week, follows a request from Murdoch, 93, to vary the terms of his irrevocable family trust.
The New York Times reported, citing a sealed Washoe County court document, that it was part of an effort to ensure that his eldest son, Lachlan, would remain in charge of his cadre of newspapers and television networks, including The Wall Street Journal and Fox News Channel.
The court held the hearings behind closed doors and sealed most of the documents. Requests for access from news organizations, including The Associated Press, have been largely denied.
According to the Times, the fund was originally set up to give his four eldest children equal control over Rupert Murdoch’s companies after his death.
Murdoch stepped down last fall as leader of both Fox News’ parent company and its media holdings, News Corp., arguing that to preserve the commercial value of his companies for all of his heirs, the trust should be amended so that Lachlan can ensure that his newspapers and TV networks continue to have a conservative editorial focus, the Times reported.
Lachlan succeeded his father as chairman of News Corp. in November. He is also an executive officer of Fox Corp., home to the conservative news network Fox News, the Fox broadcast and sports networks, and local TV stations. The media empire spans continents and has helped shape modern American politics.
Rupert Murdoch’s attempt to amend the trust has pitted him against his other three children named as beneficiaries: James, Elisabeth and Prudence. They have banded together to prevent their father from amending the trust, the Times reported.
Irrevocable trusts are typically used to limit inheritance tax, among other things, and cannot be changed without the consent of the beneficiaries or by court order.
Edmund J. Gorman, a probate commissioner in the Second District Court in Reno, Nevada, ruled this summer that Rupert Murdoch can amend the trust if he can show that he is acting in good faith and solely in the best interests of his heirs, the Times reported.
The court ruling said Murdoch wanted to give Lachlan permanent and exclusive control over his companies because the businessman feared that a lack of consensus among his children could affect the strategic direction of his businesses, including changing editorial policy and content, the Times report said.
The hearing is scheduled to continue next week. More than 40 attorneys are on the court docket.
The first carloads of lawyers arrived Monday an hour before the hearing. Some were carrying boxes of legal documents into the courthouse, where they were herded through a crowd of reporters with cameras and a half-dozen sheriff’s deputies. They were parked a few blocks south of Reno’s main casino district.
James Murdoch and his wife Karen and sister Elisabeth Murdoch arrived next in separate vehicles in the same convoy of black SUVs. About 20 minutes later, Rupert Murdoch arrived with his wife, followed by Lachlan Murdoch and his wife Sarah.
(Only the headline and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First publication: Sep 17, 2024 | 11:52 AM IST