Murdoch Children May Get up to $2bn Each in 21st Century Fox Sale

Rupert Murdoch’s six children could each receive as much as $2 billion from the sale of his 21st Century Fox global entertainment empire to Disney. Murdoch’s family trust owns a 17% interest in Fox, and that totals to a $12 billion to be split among the beneficiaries: Prudence, James, Lachlan, Elisabeth, Grace and Chloe. The last two children are from his ex-wife that he divorced five years ago and they are beneficiaries but have not voting power.

The $12 billion is the maximum the trust could receive, as there is still a hefty tax implication with the sale of the empire. Tax experts believe Murdoch would end up having to accept a “roughly”50/50 mix between cash and Disney shares for the family trust’s holding. This would mean a bill of up to $2 billion and more like a $10bn windfall for the trust and its beneficiaries.

Murdoch and his eldest son, Lachlan, are to continue to work side by side following the Fox sell-off, with the son being the chairman and chief executive of New Fox and Murdoch co-chairman. The youngest son, James, currently 21st Century Fox’s chief executive, had been set for a potential role at Disney following completion of the deal but is instead striking out on his own. It has been rumored that he might take over at Tesla as chairman after Elon Musk steps down next month.

See Mark Sweney, Murdoch Children May Get up to $2bn Each in 21st Century Fox Sale, The Guardian, October 18, 2018.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.