Good Articles to Share

Succession battle for Murdoch's media empire to play out in Nevada courtroom

Tan KW
Publish date: Thu, 12 Sep 2024, 03:33 PM
Tan KW
0 487,516
Good.

RENO, Nevada  A closed-door court battle over control of Rupert Murdoch’s media empire begins next Monday (Sept 16), and could determine the future of Fox News and The Wall Street Journal.

Rupert, 93, is attempting to change the terms of the family’s irrevocable trust to ensure his newspapers and television networks remain under control of his eldest son and chosen heir, Lachlan Murdoch, according to The New York Times, which obtained a sealed court document detailing the succession drama.

Reuters and other news organisations are attempting to gain access to sealed court records, and to open the court hearings in Reno, Nevada, before probate commissioner Edmund J Gorman Jr.

The trust lays out a scenario of how a potential takeover could occur, according to a source who has seen the documents. The trust is the vehicle through which Rupert controls News Corp and Fox, with roughly a 40% stake in voting shares of each company. He also holds a small amount of shares in the companies outside the trust.

Upon Rupert’s death, News Corp and Fox voting shares will be transferred to his four oldest children - Prudence, Elisabeth, Lachlan and James. Potentially, three of the heirs could outvote a fourth, setting up a battle over the future of the companies, even as Lachlan runs Fox and is the sole chair of News Corp.

Rupert’s proposed amendment to the trust would block any interference by three of Lachlan’s siblings, who are more politically moderate, the Times reported, citing a sealed court document.

Lachlan is viewed as ideologically aligned with his conservative father. On the other hand, James, who has donated to progressive political groups, resigned in 2020 from the News Corp board, citing disagreements over editorial content. James also has criticised the US media for amplifying disinformation about the 2020 election results ahead of the Jan 6 attack on the Capitol. He hosted a fundraiser for US President Joe Biden in 2021, before the Democrat ended his re-election campaign.

A hearing to determine whether Rupert's proposed changes to the trust would benefit his heirs will take place in a Reno courtroom, well outside the media hubs from which the conglomerate operates in New York, Los Angeles, London and Sydney.

“He's going to have to prove that these changes are being made in good faith,” said Shane Jasmine Young, a Nevada attorney who specialises in estate planning. That means demonstrating any changes would not “sacrifice the rights, or discriminate against, any of the parties that this trust was intended to protect”.

A group of news organisations, including The New York Times, CNN, The Associated Press, National Public Radio, The Washington Post and Reuters, have asked to intervene in the matter, arguing that the court should unseal the records and provide access to the proceedings.

“Though some litigants may desire secrecy and some courts indulge this desire, this level of sealing does not pass constitutional muster,” attorneys for the Access Coalition of news organisations wrote in a memo to the court, arguing the First Amendment calls for civil judicial proceedings and records to be open to the public.

The news organisations say the public have immense interest in which of Rupert’s children will succeed him at the helm of the influential media empire, an outcome that will affect thousands of jobs, millions of worldwide media consumers and the political landscape.

Spokespeople for Lachlan, James and Elisabeth declined to comment. A spokesman for Rupert referred inquiries to his attorney, who did not respond to a request for comment. An attorney representing James, Elisabeth and Prudence also could not be reached for comment.

“The reason this is interesting is the outsized role that Fox News has played in the political landscape, in the US and around the world,” said Paul Hardart, the director of the Entertainment, Media and Technology Program at the New York University’s Stern School of Business. “I think this is a reflection of the future of not only the business, but also how conservative media are handled going forward."

 


  - Reuters

 

Discussions
Be the first to like this. Showing 0 of 0 comments

Post a Comment