The real-life drama mirroring the award-winning HBO series “Succession” is about to play out in a Nevada courtroom this week. At the heart of this legal battle is the future of Fox News and other assets of Fox Corporation, a major media conglomerate.
Rupert Murdoch, the media mogul who built Fox into the powerhouse it is today, is seeking to change the succession plan for his company. Currently, the family trust dictates that Murdoch’s children will share control of the company upon his passing. However, the 93-year-old media mogul wants to revise the trust structure to ensure his eldest son, Lachlan Murdoch, who currently holds the position of executive chairman and CEO of Fox Corporation and chairman of News Corporation, assumes full control. This move has sparked opposition from Murdoch’s other children, setting the stage for a tense legal battle.
The court battle might also ignite a dispute over the future direction of Fox News, particularly its partisan leanings. James Murdoch, Rupert’s son, has been critical of Fox News’ pro-Donald Trump stance in recent years. While Lachlan and his father have had their share of disagreements over the years, much like the characters in “Succession,” Murdoch now believes that his eldest son is best positioned to lead Fox and News Corp into the future.
The Murdoch family trust was originally established as a way to avoid a conflict over the media mogul’s holdings after he left his second wife, Anna Torv Murdoch Mann. The trust and a $110 million payout to Mann helped Murdoch avoid a legal fight over his media empire.
Recent tensions between Rupert Murdoch’s children and their father have escalated, with several of them skipping his wedding to his fifth wife, Elena Zhukova, earlier this year.
The Murdoch succession court battle, scheduled to begin on Monday, is expected to remain private. Despite efforts by NPR and other media outlets to make the trial public, a probate official denied the motion. Murdoch and his four eldest children are expected to appear in court.
The outcome of this legal battle could have significant implications for Fox News and its future direction.
“If they were to change the direction and move into the direction of a CNN format, or go down the middle, it will lose its identity, lose viewers and lose revenues,” stated former Fox News president Joe Peyronnin.
James Murdoch has advocated for Fox News to adopt a format similar to Sky News in Europe, a media company he previously led during its ownership by Fox. He has criticized the Murdoch family businesses’ coverage of topics like global warming and the 2020 election.
In 2023, Fox reached a record $787.5 million settlement in a defamation lawsuit filed by Dominion Voting Systems over allegations that Fox News falsely claimed the voting machines were fraudulent in the 2020 election.
With Fox and News Corp both publicly traded companies, the family battle will draw significant attention from investors and analysts. The succession planning could ultimately determine the future direction of these media giants.
Fox and News Corp Stock Performance:
Fox shares are up 0.4% to $36.91 on Monday, with a 52-week trading range of $25.82 to $38.52. Fox stock is up 30% year-to-date in 2024. News Corp stock is up 0.2% to $27.43 on Monday, with a 52-week trading range of $20.01 to $29.59. News Corp stock is up 7% year-to-date in 2024.
