A momentous court battle over the fate of Rupert Murdoch’s media empire gets under way in Nevada today.
At stake is the future of a string of newspapers and television channels consumed by millions of people around the world, as well as thousands of jobs – and billions of pounds.
The media mogul, who turned 93 this year, has spent decades building up his news brands, making them some of the most powerful and influential in the Western world.
But now, as he nears the end of his life, a rift has opened up in his family – and raised questions about what kind of legacy he will leave behind.
The case will decide who controls Murdoch’s family trust after he is gone and which of his children will have major voting rights in his companies. And it could result in the billionaire’s heir apparent Lachlan Murdoch being out-manoeuvred by some of his less conservative siblings.
What are his family members fighting over?
The row centres around future power and influence over Mr Murdoch‘s two companies – News Corp and Fox.
News Corp owns newspapers including The Wall Street Journal and the New York Post in the US, The Australian, The Herald Sun and The Daily Telegraph in Australia, and The Sun, The Times and The Sunday Times in the UK.
Also under News Corp’s wing is publishing giant HarperCollins, along with several Australian TV channels.
Meanwhile, Fox News, Fox Sports and streaming service Tubi form part of his other major company.
Mr Murdoch has a roughly 40% stake in voting shares of each company.
Sky News, which Mr Murdoch launched in the UK in 1989, is no longer part of his empire.
At the end of 2018, Fox’s film entertainment assets, such as The Simpsons and the Avatar film franchise, were sold to Disney – while the company’s 39% stake in Sky was sold to Comcast.
Who is involved in the case and why?
Sorting out Mr Murdoch’s inheritance was never going to be easy – he has six children and has been married five times, most recently to retired molecular biologist Elena Zhukova.
However, it had long been presumed that his business succession plans were largely settled in 1999, following his divorce from his second wife Anna.
That year the Murdoch Family Trust was founded – establishing the principle that, when he died, his News Corp and Fox’s voting shares would be divided between his four oldest children – Prudence, Elisabeth, Lachlan and James.
Following the “irrevocable” agreement, Mr Murdoch began integrating some of his children into roles at his companies.
However, following a shift in relations with some of his offspring, it emerged earlier this year that the media mogul had changed his mind.
The New York Times revealed that Mr Murdoch had decided he wanted to change the terms of the trust, to ensure his eldest son Lachlan would go on to run his businesses without “interference” from his other siblings.
The newspaper reported that James, Elisabeth and Prudence “were caught completely off-guard” by the move and had decided to unite to stop him.
Lachlan has reportedly taken his father’s side in the case.
Why did Murdoch change his mind?
The billionaire’s efforts to tweak the terms of the family trust come amid signs that he has increasingly favoured Lachlan as his chosen heir in recent years.
When Mr Murdoch revealed last year he was stepping down as chair of Fox and News Corp, it was announced that his eldest son would become the sole chair of News Corp – while also continuing as executive chair and chief executive of Fox.
The main reason, it is thought, is politics. Lachlan is seen as more similar and aligned with his father’s right-wing views, while James, Elisabeth and Prudence are seen as more moderate in their beliefs.
Indeed, the media mogul’s decision to give Lachlan “permanent, exclusive control” came amid worries over the “lack of consensus” among his children about the future of the Murdoch brands, according to court documents seen by The New York Times.
