The billion-dollar battle of the Murdoch empire comes down to Reno courtroom

Since Monday, billionaire Rupert Murdoch, 93, and his team of lawyers have been in probate court, fighting over the fate of his media empire, including Fox News, The Wall Street Journal and The New York Post.

Murdoch wants son Lachlan Murdoch, who currently runs the vast collection of publishing and television companies, to have full control after his death. But to do that, Murdoch has to break an irrevocable trust set up during his second divorce. The way the trust stands now, operational control will be shared equally among Murdoch’s four oldest children. James, Elisabeth and Prudence Murdoch are arguing against their father’s desire to change the trust.

According to the Times, Murdoch “is arguing in court that only by empowering Lachlan to run the company without interference from his more politically moderate siblings can he preserve its conservative editorial bent, and thus protect its commercial value for all his heirs.”

The Times reported that the Nevada probate commissioner found “Murdoch could amend the trust if he is able to show he is acting in good faith and for the sole benefit of his heirs.”

When Murdoch dies, according to his irrevocable trust, his voting shares of FOX and News Corp. are set to go equally to his four oldest children. Murdoch wants it to go to son Lachlan, who runs FOX and is the chair of News Corp. Murdoch set up the trust during a previous divorce. Irrevocable trusts are usually set up for tax reasons and can’t be changed without permission from beneficiaries or a court order.

Both sides are in front of Probate Commissioner Edward Gorman Jr. He was appointed as the commissioner in 2019. According to the county’s website, he came to Nevada in 2009 for the abundant outdoor and community activities. He was an attorney and did estate planning, probate and business matters. He has been on the board of the Reno Host Lions club Charity and the Reno Jazz Orchestra. Gorman ruled earlier this year that if Murdoch can prove changing the trust is being done for the benefit of his heirs, he can change it, according to the New York Times. He also ruled against multiple petitions to the court for media access.

For more information see Siobhan McAndrew “The billion-dollar battle of the Murdoch empire comes down to Reno courtroom,” Reno Gazette Journal, September 18, 2024. 

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