Television
Nevada Commissioner Rules Against Rupert Murdoch's Trust Change
2024-12-10
In Reno, Nevada, a significant development has taken place regarding Rupert Murdoch's family trust. A sealed document obtained by The New York Times reveals that a probate commissioner has ruled against Murdoch's attempt to change the trust in a way that would give one of his sons, Lachlan Murdoch, control of his media empire and ensure Fox News maintains its conservative editorial slant.
Key Aspects of the Ruling
The commissioner, in a decision filed on Saturday, concluded that Rupert Murdoch, 93, and Lachlan Murdoch had acted in "bad faith" during their bid to amend the irrevocable trust. The trust divides control of the company equally among Murdoch's four oldest children - Prudence, Elisabeth, Lachlan, and James - after his death. Lachlan Murdoch has been at the helm of Fox News and News Corp. since late last year when his father stepped down.Rupert Murdoch had argued that changing the trust was necessary to preserve the commercial value of his businesses for all his heirs. However, James and Elisabeth Murdoch are known to have less-conservative political views, potentially complicating efforts to keep Fox News firmly in the conservative camp.Nevada Probate Commissioner Edmund J. Gorman Jr. of the Second Judicial District Court characterized the plan to change the trust as a "carefully crafted charade" aimed at "permanently cementing Lachlan Murdoch's executive roles" within the empire, regardless of the impacts on the companies or the trust beneficiaries.Adam Streisand, a lawyer for Rupert Murdoch, expressed disappointment with the ruling and stated that his client and his son intended to appeal. A spokesperson for Prudence, Elisabeth, and James Murdoch welcomed the ruling and hoped that the family could "move beyond this litigation to focus on strengthening and rebuilding relationships among all family members."In his conclusion, Gorman said, "The effort was an attempt to stack the deck in Lachlan Murdoch's favor after Rupert Murdoch's passing so that his succession would be immutable. The play might have worked; but an evidentiary hearing, like a showdown in a game of poker, is where gamesmanship collides with the facts and at its conclusion, all the bluffs are called and the cards lie face up." He added, "The court, after considering the facts of this case in the light of the law, sees the cards for what they are and concludes this raw deal will not, over the signature of this probate commissioner, prevail."Regarding Lachlan Murdoch's role, he has been at the forefront of Fox News and News Corp. His leadership and influence have been crucial in shaping the direction of these media entities. The trust's division of control among the children ensures a certain level of balance and shared responsibility.The implications of this ruling extend beyond just the Murdoch family. It has implications for the future of Fox News and the broader media landscape. The conservative editorial slant that Fox News has been known for may face uncertainties in the wake of this decision.Moreover, it highlights the complex nature of family trusts and the power struggles that can arise when trying to make significant changes to such arrangements. It shows the importance of following legal procedures and acting in good faith when dealing with such matters.In conclusion, this ruling in Reno has set in motion a series of events that will likely have a lasting impact on the Murdoch family and the media world. It remains to be seen how the appeal process will unfold and what the ultimate outcome will be.