The Murdoch family battle could have huge implications for the future of Fox News

  • CNN
  • September 17, 2024
New York

CNN

 — 

At most offices, water cooler talk revolves around annoying company rules or the quality of the snacks in the break room. But at Fox News, they gossip about the Murdochs, the family who controls Fox's parent company.

What will happen after patriarch Rupert Murdoch dies? Could his more moderate children wrest control of Fox News from his conservative chosen-son Lachlan? Could Lachlan's younger brother James Murdoch force Fox to take a progressive bent?

These unknowns are at the heart of the Murdoch family's secret succession battle in an obscure Nevada court this month. Rupert Murdoch, 93, is seeking to amend the family trust that he established decades ago, giving his four oldest children equal votes over the future of his conservative media empire after he dies. He wants to change the structure so that Lachlan will remain in charge for decades to come.

Rupert Murdoch with his son Lachlan Murdoch arrives at St Bride's Church for a service to celebrate his marriage to Jerry Hall on March 5, 2016 in London, England.

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If the elder Murdoch prevails before a probate judge in Reno, Nevada, then James Murdoch's path for a potential revamp of Fox News will be blocked.

In the newly released paperback edition of my book "Network of Lies," I report that James has been troubled for years by Fox's right-wing programming.

James, who left the family empire in 2020 after "disagreements" over editorial content, welcomed President Biden to his home for a fundraiser in 2022 and endorsed Kamala Harris earlier this month. The younger sibling has also privately likened Fox's prime time talk shows to "poison" and bemoaned how the network's misinformation distorts the public discourse. James" According to a person familiar with the matter, he has also drafted detailed plans for dragging Fox News back toward what he considers reality-based news and away from pro-Donald Trump propaganda.

The prospect of a James-led takeover is openly discussed, and, by some, feared, inside Fox News. Prominent Fox hosts have talked openly about how they might reposition their own personal brands to appeal to James. Some Fox personalities have even tried to establish back-channel relationships with him, even though Lachlan, the chairman and CEO of Fox News parent company Fox Corp, is currently the boss. The two brothers are not on speaking terms.

The theme music from the HBO drama "Succession" is probably playing in your head right about now. Yes, some savvy (or conniving) Fox hosts have plotted how to remain relevant if the political winds shift after Rupert's death. But Rupert is in Reno right now trying to control the weather.

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Succession hearing for Murdoch media empire begins in Nevada

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Late last year, the elder Murdoch moved to rewrite the terms of the family trust, according to The New York Times, which first revealed the secret dispute in July.

Under the current terms, Lachlan, James, Elisabeth and Prudence Murdoch each have equal voting rights after their father dies. This means Lachlan could be ousted in a 3-against-1 vote. Both the television business (Fox Corp) and the Murdoch family's publishing business (News Corp, the owner of the Wall Street Journal and the New York Post) could be overhauled someday.

Liberal critics of Fox have buzzed about that possibility for years. (Maureen Dowd of The New York Times suggested in a 2020 column that James could be "the anti-venom" to Fox's poison.) But Rupert, long known for his conservative politics, evidently wants to ensure that his media outlets retain a right-wing bent long after his death. That's what his attempt to upend the irrevocable trust is about.

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Billions of dollars are at stake. Without explicitly saying so, Rupert's side is asserting that maintaining the company's political bent, and keeping Fox's audience hooked on pro-Trump programming, is what's best for the bottom line. As a recent story in the Journal explained, Rupert "is arguing that shifting voting control of the trust to Lachlan should be allowed because it is in the best interest of all the beneficiaries, including his other children."

James, Elisabeth and Prudence oppose the change. So the family members are all in Reno (a favored and usually low-profile location for such disputes) for critical hearings. The proceedings began Monday and may take about two weeks, according to a person with knowledge of the matter. The source insisted on anonymity because the case is so secretive that, for weeks, the court wouldn't even acknowledge the Murdochs were involved.

On Monday, though, the dispute was visible on camera because Rupert walked into court through the front door. He was joined by former attorney general Bill Barr, a longtime Murdoch confidant who is said to be aiding Murdoch's rewrite effort. A now-public docket listing indicates the proceedings are scheduled to continue through at least next Tuesday.

On one level this is a highly personal, and painful, dispute between billionaires. On another level, this is intensely political, and that's why it matters to everyone else.

With the support of Elisabeth and Prudence, James could theoretically take control of the family business someday. But his father is trying to stop him. Until the judge weighs in, Fox employees will continue to speculate about the old boss, the new boss and the fate of the entire network.