The Murdoch Media control is to be decided after the succession hearing. In the image, News corp. CEO Rupert Murdoch. (AP Photo)
On Monday, Rupert Murdoch and four of his children appeared in a closed-door hearing in Nevada to discuss the future control of Murdoch's media empire. The hearing, which will resume on Tuesday and continue into next week, follows Murdoch's decision last year to alter the terms of his irrevocable family trust.
According to a sealed court document obtained by The New York Times, the changes are aimed at ensuring that Murdoch's eldest son, Lachlan, remains in charge of his extensive media holdings, which include The Wall Street Journal and Fox News Channel.
The court has kept the proceedings private, rejecting most requests from news organizations like The Associated Press for access to the details. Originally, the trust was designed to grant equal control of Murdoch's businesses to his four oldest children upon his death.
Murdoch, now 93, stepped down as leader of both Fox News' parent company and News Corp. last fall. He argues that altering the trust is necessary to maintain the commercial value of his businesses and to ensure that Lachlan can continue guiding the editorial direction of his media outlets.
Lachlan took over as chairman of News Corp. in November and is also the executive officer at Fox Corp., which includes Fox News, the Fox broadcast and sports networks, and various local TV stations. His father's media empire has had a significant impact on modern American politics.
Murdoch's attempt to change the trust has led to a dispute with his other three children—James, Elisabeth, and Prudence—who are also beneficiaries and are opposing the changes.
Irrevocable trusts, which are used to manage estate taxes and other concerns, generally cannot be altered without approval from the beneficiaries or a court order. This summer, Nevada Probate Commissioner Edmund J. Gorman ruled that Murdoch could modify the trust if he can prove he is acting in good faith and solely for the benefit of his heirs.
The court's decision noted that Murdoch wanted Lachlan to have permanent control to avoid any potential disagreements among his children that could impact the direction and editorial stance of his companies.
The hearing will continue next week, with over 40 lawyers involved. On Monday, legal teams began arriving early, carrying boxes of documents through a crowd of reporters and deputies. James Murdoch and his wife, Karen, along with Elisabeth Murdoch, arrived separately in black SUVs. Rupert Murdoch and his wife, followed by Lachlan Murdoch and his wife, Sarah, arrived shortly after.
