Rupert Murdoch’s succession drama enters its next act
September 22, 2023 - The decision by media mogul Rupert Murdoch to relinquish power to his elder son, Lachlan, does not settle the potential power play that could occur on Rupert’s death.
On Sep 21, Rupert Murdoch announced that he was stepping down as the chairman of Fox Corp and News Corp, ending a more than seven-decade career during which he created a media empire spanning from Australia to the United States.
While Lachlan was the expected choice to replace his father, it is unclear what will happen when the elder Murdoch dies.
Ascending to the throne and holding on to it are different propositions. Lachlan’s future will be decided by his siblings, all of whom sit on the board of the trust that controls the company through a special class of stock.
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.
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 media empire.