Lachlan Murdoch takes full control of media empire after family settlement

The Murdoch family has drawn a line under decades of speculation over succession, with Lachlan Murdoch confirmed as the controlling heir to Rupert Murdoch’s media empire.

News Corp announced early Tuesday morning (Aust time) that the Murdoch Family Trust has reached a resolution to end litigation in Nevada, paving the way for new structures that secure Lachlan’s control of both News Corp and Fox Corporation. His sisters Prudence MacLeod and Elisabeth Murdoch, and his brother James Murdoch, will no longer hold shares in either company following the restructuring.

Under the deal, new trusts will be created for Lachlan and Rupert’s younger daughters Grace and Chloe, with cash consideration provided to the departing beneficiaries through the sale of more than 14 million News Corp shares and nearly 17 million Fox shares previously held in the family trust.

After the transactions, a new holding company owned by the remaining trusts will control around 33% of News Corp’s Class B stock and 36% of Fox Corporation’s Class B stock.

Both FOX and News Corp’s board of directors welcomed the developments, adding they "the leadership, vision and management by the company’s Chair, Lachlan Murdoch, will continue to be important to guiding the company’s strategy and success."

The arrangement also locks in a long-term standstill agreement, preventing Prudence, Elisabeth and James from reacquiring shares or influencing the companies in the future. Voting rights for the remaining shares will rest with Lachlan, cementing his leadership role across the empire.

Rupert Murdoch, now 94, will remain as chairman emeritus of News Corp. In a statement, the company’s board said Lachlan’s “leadership, vision and management” would continue to guide its strategy and success.

The settlement brings closure to years of tension within one of the world’s most powerful media dynasties, ensuring that the global outlets spanning Fox News, The Wall Street Journal and The New York Post will remain under Lachlan Murdoch’s control after Rupert’s death.