Murdoch Family Trust: The Real Battle Will Be Over Succession

When Lachlan Murdoch, the eldest son of media titan Rupert Murdoch, was named the sole chairman of News Corp and Fox Corp on Thursday, the announcement put to rest immediate questions about who will run a sprawling media empire that includes some of the most powerful brands in the world.

Reuters reports the executive transition, however, 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.

Rupert Murdoch

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 oldest 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.

This tension would likely play out over the future of Fox News, one of the most polarizing properties in the Murdoch empire, and an influential force in U.S. politics, particularly among Republicans who prize Fox's conservative-leaning audience.

“It’s not like a real succession scenario right now, this minute,” said Enders. “It’s more in the future I’d say.”