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When Lachlan Murdoch, the eldest son of media titan Rupert Murdoch, was named the sole chairman of News Corp Thursday, the announcement put to rest immediate questions about who will run News Corp and Fox Corp: a sprawling media empire that includes some of the most powerful brands in the world.
But the executive transition does not settle another potential power play that could occur upon Rupert Murdoch’s death, as framed by a document called the Murdoch Family Trust.
The Reno, Nevada-based trust lays out a scenario through which a potential takeover could occur. It is the vehicle through which the elder Murdoch controls News Corp and Fox Corp, through a roughly 40% stake in voting shares of each company. Murdoch also holds a small amount of shares of the companies outside of the trust.
Upon Rupert’s death, News Corp and Fox Corp voting shares will be transferred from Murdoch to his four adult children – Prudence, Elisabeth, Lachlan and James – creating a scenario in which three of the children could out-vote a fourth, potentially setting up a battle over the future of the companies, even as Lachlan Murdoch runs Fox Corp and is the sole chair of News Corp.
The Murdoch Family Trust has eight votes: four of which are controlled by Murdoch, and the remaining four controlled by the four children from his first two marriages. Murdoch’s youngest daughters Chloe and Grace, from his third wife Wendi Deng, do not have voting rights in the trust.
Upon succession, the four older children will equally inherit Murdoch’s voting shares in the trust, according to Alice Enders, Head of Research at Enders Analysis.
In addition to shares in News Corp and Fox, the trust also includes the Cruden family farm near Melbourne and Murdoch’s art collection, according to a January 2023 Financial Times report.
Fox and News Corp have a dual-share system, with non-voting Class A shares and voting Class B shares. The shares in Fox and News Corp owned by Murdoch’s children through the trust are a combination of both classes of shares.
“It’s not like a real succession scenario right now, this minute,” said Enders. “It’s more in the future I’d say.”
News Corp
Another News24 article points out that the business includes Murdoch’s holdings in his birth country of Australia – led by The Australian, the lone national daily started by Murdoch in 1964.
The company also owns in Australia The Daily Telegraph and news website News.com.au, as well as television station Sky News Australia and pay television company Foxtel.
Murdoch’s initial investment in Britain came in 1969 with the purchase of the tabloid News of the World, which was shut down in 2011 following a phone hacking scandal.
In 1981, he purchased the prestigious daily The Times, along with The Sunday Times, adding to a print news business that also included The Sun.
Holdings in radio and television included talkSPORT, TalkTV and Virgin Radio UK.
News Corp is also present in Ireland with local radio stations.
Murdoch’s push in North America dates to 1985 with his purchase of the New York Post.
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In 2007, News Corp landed a major acquisition of the media group Dow Jones, whose holdings include the long-respected Wall Street Journal.
The company in 1987 added the publishing house HarperCollins, which originally dates to 1817. HarperCollins bought romance publisher Harlequin in 2014.
News Corp also controls Rea Group, which specialises in commercial and residential real estate through websites such as realtor.com and flatmates.com.au.
In fiscal 2023, News Corp reported profits of $149 million on revenues of $9.9 billion.
Fox Corporation
In 1984, Murdoch acquired 20th Century Fox, an entity he reorganised and remade. In 2017, he sold the movie studio, renamed 21st Century Fox, to Disney.
Fox Corporation is now comprised of the national television channel Fox and several cable channels, as well as Fox News, which is known for a right-wing spin on news popular with conservative Americans.
Other holdings include the entertainment news network TMZ, as well as Studio Ramsay Global, which features British celebrity chef Gordon Ramsay and the MasterChef franchise.
In fiscal 2023, Fox reported profits of $1.3 billion on $14.9 billion in revenues.
