Murdoch’s Trust: the real-life succession saga behind News Corp’s media empire

No matter what your political views are, it’s fair to say that what Rupert Murdoch has achieved from a business perspective is nothing short of extraordinary. As Michael Wolff said in his book ‘The Man Who Owns The News,’

“He is — and this is a fundamental entrepreneurial talent — a master illusionist. It’s the essential entrepreneurial skill, to convince people you are what you have yet to become.”

Inheriting his father’s Adelaide-based newspaper, simply called ‘The News,’ at the age of just 21, Murdoch had big aspirations. Expanding aggressively in Australia throughout the 50s and 60s, he set about acquiring national tabloids in Sydney, Perth, and Melbourne, cultivating a name for bold populist journalism.

By the 80s, Murdoch had grown News Corporation into an international media conglomerate, buying up such names as The Sun, The Times, San Antonio Express, New York Post, and of course, News of the World. In 1986, Forbes estimated Murdoch’s wealth to be over a billion US dollars, making him one of the most powerful media moguls in the world.

However, such rapid expansion had come at a price. News Corporation was heavily leveraged— to the tune of US$7 billion. In October 1987, global stock markets plummeted, triggering a liquidity crisis and famed as ‘Black Monday.’ Murdoch nearly went into default. Personally negotiating with the 43 creditors that were funding his meteoric rise, Murdoch was able to keep the lights on by restructuring his debt-pile and selling off fringe assets such as publishers, magazines, and regional newspapers. Keeping a firm hold on his crown jewels, namely Sky, Fox News, The Times, and The Sun, News Corporation avoided significant dismantlement by the banks.

One of the key reasons the Murdoch empire is as big and influential as it is today was down to his political alliance with Margaret Thatcher. Owning four major tabloids in the UK and a broadcaster would normally have triggered intervention from the Monopolies and Mergers Commission. Furthermore, Sky was operating in a ‘regulatory grey area,’ broadcasting from Luxembourg and therefore avoiding UK licensing restrictions. Despite undercutting government-backed British Satellite Broadcasting (BSB), which had been awarded the official franchise, Thatcher’s cabinet did not intervene in Murdoch’s affairs. Sharing strong anti-unionist and pro-market political views, Thatcher benefitted from Murdoch’s media support and voice among the working classes, particularly via The Sun newspaper. BSB and Sky merged in 1990, becoming BSkyB, with Murdoch walking away holding ultimate power over UK satellite television.

Having survived a major restructure and following divorce proceedings with his second wife, Anna dePeyster (née Torv) in 1999 (mother to Lachlan, Elizabeth and James), Murdoch was forced to set up the Murdoch Family Trust to keep control within the immediate family. By then 68 years old, with sole majority voting rights over the largest media conglomerate in the Western world, turning over annual sales of US$14 billion, this was the first time any form of legally binding succession planning had been formalised. Naming his four eldest children (Prudence, Lachlan, Elizabeth and James) as voting beneficiaries, would split power equally among the siblings on Murdoch’s death.

While this defining moment consolidated the family’s controlling stake in News Corporation, it also marked the beginning of one of the longest-running and most high-profile succession battles in modern corporate history. Not sharing the same political views or vision for the business, the trust risked deadlock and a lack of unity. If James and Lachlan had opposing views, then Prudence and Elizabeth held the power to side with one or the other. One successor had to emerge with ultimate power.

Shortly after establishing the Murdoch Family Trust, in 2000, Elizabeth sold her TV company ‘Shine Group,’ responsible for such hit shows as ‘MasterChef’ and ‘Biggest Loser,’ to News Corp for £415 million. Later labelled by James as nepotistic, tensions and rivalry among the siblings started to unravel.

Appointed as Deputy Chief Operating Officer of News Corporation in New York, eldest son Lachlan appeared to be Murdoch’s obvious choice as heir apparent to take over the family business. However, there was a controversial turn of events after Lachlan stood down from his role and the board, reportedly returning to Australia to spend more time with his family. Later it transpired that Murdoch had sided with his right-hand men, Roger Ailes and Peter Chernin, on a number of internal matters, undermining Lachlan and ultimately causing him to withdraw from politics.

This cleared the way for brother James, who had been successfully growing Sky in the UK, scaling up demand for paid TV and broadband, to step up to the plate and lay his claim to the throne. As executive chairman of News International, the division responsible for publishing The Times, The Sun and News of the World, James soon became embroiled in the phone hacking scandal. His credibility to lead News International was left in tatters after he failed to prove before a UK parliamentary committee that he was unaware of the highly unethical practice being widespread at News of the World during his tenure. In 2011, under mounting political and commercial pressure, and after 168 years of publication, Murdoch took the decision to close down the embattled tabloid, and in 2012, James resigned from News International and BSkyB.

After nine years back in Australia running his own businesses— a couple of radio wins and television misfires later— Lachlan returned to New York as co-chairman of News Corp and 21st Century Fox in 2014, alongside his father. Seemingly sharing the stage with James, who was now CEO of 21st Century Fox, for a while it looked as though power could be shared between them, with Lachlan leading strategic decision-making and James in charge of operations. Co-existing alongside one another, there seemed to finally be some harmony; however, Murdoch still held onto power.

In 2019, Murdoch sold off 21st Century Fox and its assets to Disney for US$71 billion. Lachlan was made CEO of the consolidated Fox Corporation, which now consisted of Fox News, Fox Sports, and Fox Broadcasting. Following the sale, James, who was much more creative-minded and had been heavily involved in the entertainment and movie-making side of 21st Century Fox and Sky, distanced himself from Fox Corporation.

Relinquishing any executive responsibility and retreating to a non-exec position on the board of News Corp, James became increasingly disillusioned by the climate scepticism and political direction Murdoch and Lachlan were steering the business in. Realising he could not make his father’s empire more ‘progressive’ from within, James finally resigned from News Corp in July 2020, citing “disagreements over certain editorial content published by the company’s news outlets and certain other strategic decisions.”

With James out of the picture and Lachlan the only Murdoch child in an executive role, the path of succession was clear. In 2023, Rupert ‘retires’ but maintains influence as “Chairman Emeritus.” In a bid to remove any form of control or voting rights from his remaining offspring, and hand sole power of News Corp over to Lachlan, Murdoch attempted to amend the family trust. Prudence, Elizabeth and James contested the move, bringing a lawsuit in Nevada, where the family trust is domiciled. The case went to trial and the presiding judge ruled, in December 2024, that Lachlan and Murdoch had acted in ‘bad faith,’ and revoked their attempt to cut the others out.

Finally resolving the 26-year succession saga on 8th September 2025, Prudence, Elizabeth and James agree to exit the trust that controls Fox and News Corp. Giving up their voting rights, in exchange for a payout worth around US$1.1 billion each, Lachlan is left with sole control over the entities. Daughters from his marriage to Wendi Deng, Grace and Chloe, are now named as beneficiaries of the trust, but with no voting rights.