Rupert Murdoch Fails To Alter Family Trust In Favor of Son Lachlan

Rupert Murdoch’s bid to amend his family trust and consolidate control of his media empire under his son Lachlan has been rejected, The New York Times reported, citing sealed court documents.

Nevada commissioner Edmund Gorman ruled on Saturday that Rupert and Lachlan Murdoch acted in “bad faith” in attempting to alter the irrevocable trust, which divides control of the company equally among Rupert Murdoch’s four oldest children. I Photo: David Shankbone Wikimedia Commons

Dawn Chmielewski, Katharine Johnson, and Eric Beech of Reuters contributed to the report.

Nevada commissioner Edmund Gorman ruled on Saturday that Rupert and Lachlan Murdoch acted in “bad faith” in attempting to alter the irrevocable trust, which divides control of the company equally among Rupert Murdoch’s four oldest children—Lachlan, James, Elisabeth, and Prudence—after his death.

The Murdochs sought to amend the trust to solidify Lachlan’s leadership of the media empire, which includes Fox News and News Corp., and prevent interference from his three siblings, who have more moderate political views.

The Times reported that under the current trust arrangement, Lachlan’s siblings could technically outvote him, potentially creating a power struggle over the empire’s future.

Gorman described the proposed amendment as a “carefully crafted charade” designed to “permanently cement Lachlan Murdoch’s executive roles” without regard for the trust’s beneficiaries or the companies’ well-being.