Lachlan Murdoch Secures Control of Family Media Empire as Murdoch Clan Ends Litigation

The Murdoch family on Monday reached a settlement that ends a protracted legal fight over control of the media assets built by Rupert Murdoch and cements Lachlan Murdoch's position as the family's operating head.

Under the deal, a new trust called LGC Holdco LLC will be established for the benefit of Lachlan Murdoch and his younger sisters, Grace and Chloe Murdoch, with Lachlan holding all voting rights in the trust. The arrangement will hold large stakes in Fox Corporation and News Corp once the transaction is completed, the companies said. Rupert Murdoch will remain Chairman Emeritus of both companies.

The settlement, valued at about $3.3 billion, transfers the interests of the three older Murdoch siblings — Prudence MacLeod, Elisabeth Murdoch and James Murdoch — out of the family trust and provides them with cash consideration. Those departing beneficiaries are to receive roughly $1.1 billion when the transaction closes, which sources said is expected within six months. Part of the consideration will be funded by the public sale of approximately 14.2 million shares of News Corp Class B common stock and about 16.9 million shares of Fox Corp Class B common stock previously held by the Murdoch Family Trust.

The agreement also requires the three siblings to divest any de minimis personal holdings in the two companies and subjects them to a long-term standstill preventing them and their affiliates from acquiring shares of Fox and News Corporation or taking certain other actions with respect to the companies, the statement said.

News Corp’s board welcomed the developments, saying it believes “the leadership, vision and management by the Company’s Chair, Lachlan Murdoch, will continue to be important to guiding the Company’s strategy and success.” Market reaction was immediate: Fox Corp. shares closed at an all-time high of $62.49 on Monday, while News Corp closed at $29.94, within a dollar of its record.

The settlement resolves litigation that had centered on proposed changes to the family trust and who would control its voting interests after Rupert Murdoch steps down. A Nevada court previously ruled against attempts to alter the irrevocable trust, and the dispute had prompted sealed proceedings and intense negotiations that continued into the summer.

Lachlan Murdoch, 54, has been running day-to-day operations at the major family companies for several years and will now have formalized control of the trust that will hold the family's voting interests. The value of family stock held in the trust has risen an estimated 68 percent, or about $3.4 billion, since Lachlan assumed de facto leadership of the business in 2019.

Company officials said the transaction structure preserves the family’s economic interests while simplifying the governance structure by consolidating voting power in a single trust vehicle. The sale of shares to fund the buyouts and the standstill provisions aim to reduce the likelihood of future stock-based contests among family members.

The businesses affected include Fox Corp., the parent of the cable network Fox News, and News Corp., whose properties include The Wall Street Journal and the New York Post. Both companies are publicly traded, and the deal leaves operational management in place while altering how the family’s ownership influence is aggregated and exercised.

The settlement ends the principal legal front in what had been a closely watched intra-family dispute over succession and control of significant media holdings. Terms of the agreement call for closing within six months and include customary conditions and regulatory considerations tied to the repatriation and sale of publicly traded shares held by the family trust.

With the litigation settled, attention will shift to the practical governance of Fox Corp. and News Corp. Analysts said the consolidation of voting control under Lachlan removes a major source of uncertainty about the companies’ future strategic direction, though day-to-day editorial and business decisions will continue to be made by existing management teams. Rupert Murdoch, 94, will retain a formal emeritus role, while the company and family implement the agreed transfer of trust interests.

The deal marks a significant moment in the corporate governance of two large media companies and concludes an episode of high-profile family litigation that had drawn comparisons to fictionalized accounts of dynastic succession. Executives and board members framed the settlement as preserving continuity and enabling focused leadership for the companies going forward.