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Murdoch succession battle to play out in Nevada courtroom
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Murdoch succession battle to play out in Nevada courtroom
Sep 12, 2024 2:14 AM

RENO, Nevada, Sept 12 (Reuters) - A closed-door court

battle over control of Rupert Murdoch's media empire begins

Sept. 16, and could determine the future of Fox News and the

Wall Street Journal.

Murdoch, 93, is attempting to change the terms of the

family's irrevocable trust to ensure his newspapers and

television networks remain under control of his eldest son and

chosen heir, Lachlan Murdoch, according to the New York Times,

which obtained a sealed court document detailing the succession

drama.

Reuters and other news organizations are attempting to gain

access to sealed court records, and to open the court hearings

in Reno, Nevada, before probate commissioner Edmund J. Gorman

Jr.

The trust lays out a scenario on how a potential takeover

could occur, according to a source who has seen the documents.

The trust is the vehicle through which the elder Murdoch

controls News Corp ( NWSA ) and Fox, with roughly a 40%

stake in voting shares of each company. Murdoch also holds a

small amount of shares of the companies outside the trust.

Upon Rupert Murdoch's death, News Corp ( NWSA ) and Fox voting shares

will be transferred to his four oldest children - Prudence,

Elisabeth, Lachlan and James. Potentially, three of the heirs

could out-vote a fourth, setting up a battle over the future of

the companies, even as Lachlan Murdoch runs Fox and is sole

chair of News Corp. ( NWSA )

Rupert Murdoch's proposed amendment to the trust would block

any interference by three of Lachlan's siblings, who are more

politically moderate, the Times reported, citing a sealed court

document.

Lachlan Murdoch is viewed as ideologically aligned with his

conservative father. James Murdoch, who has donated to

progressive political groups, resigned in 2020 from the News

Corp ( NWSA ) board, citing disagreements over editorial content. James

also has criticized the U.S. media for amplifying disinformation

about the 2020 election results ahead of the Jan. 6 attack on

the Capitol. He hosted a fundraiser for U.S. President Joe Biden

in 2021, before the Democrat ended his re-election campaign.

A hearing to determine whether Rupert Murdoch's proposed

changes to the trust would benefit his heirs will take place in

a Reno courtroom, well outside the media hubs from which the

conglomerate operates in New York, Los Angeles, London and

Sydney.

"He's going to have to prove that these changes are being

made in good faith," said Shane Jasmine Young, a Nevada attorney

who specializes in estate planning. That means demonstrating any

changes would not "sacrifice the rights, or discriminate

against, any of the parties that this trust was intended to

protect."

A group of news organizations, including the New York Times,

CNN, The Associated Press, National Public Radio, The Washington

Post and Reuters, have asked to intervene in the matter, arguing

that the court should unseal the records and provide access to

the proceedings.

"Though some litigants may desire secrecy and some courts

indulge this desire, this level of sealing does not pass

constitutional muster," attorneys for the Access Coalition of

news organizations wrote in a memo to the court, arguing the

First Amendment calls for civil judicial proceedings and records

to be open to the public.

The news organizations say the public has immense interest

in which of Murdoch's children will succeed him at the helm of

the influential media empire, an outcome that will affect

thousands of jobs, millions of worldwide media consumers and the

political landscape.

Spokespeople for Lachlan, James and Elisabeth Murdoch

declined comment. A spokesman for Rupert Murdoch referred

inquiries to his attorney, who did not respond to a request for

comment. An attorney representing James, Elisabeth and Prudence

also could not be reached for comment.

"The reason this is interesting is the outsized role that

Fox (News) has played in the political landscape, in the U.S.

and around the world," said Paul Hardart, director of the

Entertainment, Media and Technology Program at New York

University's Stern School of Business. "I think this is a

reflection of the future of not only the business, but also how

conservative media is handled going forward."

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