A Nevada commissioner ruled resoundingly against Rupert Murdoch’s attempt to change his family’s trust to consolidate his eldest son Lachlan’s control of his media empire and lock in Fox News’s right-wing editorial slant, according to a sealed court document obtained by The New York Times.
The commissioner, Edmund J. Gorman Jr., concluded in a decision filed on Saturday that the father and son, who is the head of Fox News and News Corp., had acted in “bad faith” in their effort to amend the irrevocable trust, which divides control of the company equally among Murdoch’s four oldest children — Lachlan, James, Elisabeth and Prudence — after his death.
The ruling was at times scathing. At one point in his 96-page opinion, Gorman characterizes the plan to change the trust as a “carefully crafted charade” to “permanently cement Lachlan Murdoch’s executive roles” inside the empire “regardless of the impacts such control would have over the companies or the beneficiaries” of the family trust.
A lawyer for Murdoch, Adam Streisand, said Murdoch and Lachlan were disappointed with the ruling and intended to appeal.
In a statement, James, Elisabeth and Prudence said: “We welcome Commissioner Gorman’s decision and hope that we can move beyond this litigation to focus on strengthening and rebuilding relationships among all family members.”
The battle over the family trust is not about money — Murdoch is not seeking to diminish any of his children’s financial stakes in the company — but rather about future control of the world’s most powerful conservative media empire, which includes Fox News, The Wall Street Journal, The New York Post and major newspapers and television outlets in Australia and Britain.
Murdoch, now 93, has long intended to bequeath these sprawling media conglomerates to his children, much as his own father had passed on his vastly smaller media company to Murdoch and his sisters. But he is also determined to preserve the right-wing bent of his empire, and reconciling these two desires has become a growing challenge for him.
New York Times News Service
