A "momentous" court battle to determine the future of Rupert Murdoch's media empire and his £14.9 billion family trust begins in Nevada today.
The fate of "a string of newspapers and television channels consumed by millions of people around the world" is at stake, as well as "thousands of jobs" and "billions of pounds", said Sky News.
What is the court case about? At the heart of the case is a £14.9 billion family trust created in 1999, when Rupert Murdoch was divorcing his second wife, Anna. Instead of seeking a larger share of his fortune, Anna had an "irrevocable family trust" set up for her three children (Elisabeth, Lachlan and James) and Murdoch's eldest child Prudence (born to his first wife, Patricia Booker), which meant that when Murdoch died, his News Corp and Fox voting shares would be divided between them.
However, last November, Murdoch began legal action to change this arrangement, to give his chosen successor, eldest son Lachlan, full control. Prudence, Elisabeth and James are now contesting the move.
Why does Murdoch want to change the trust? Political differences are said to play a significant role. Lachlan is thought to more closely share his father's right-wing views and has been a strong supporter of Fox News's conservative editorial line, which Murdoch believes is important for the continued success of his media empire.
What could change? Murdoch wants to give Lachlan "permanent, exclusive control" of the companies after his death in a plan dubbed "Project Harmony", according to reports.
"It is ironic that Rupert has managed to get James, Elisabeth and Prudence together, as before the case they didn't share much common ground," one long-time News Corp executive told The Telegraph. "Rupert keeps the family together, but once he has gone the siblings are likely to devolve into all out war."
What are the potential outcomes of the case? The court case could go in a number of directions. If Murdoch wins, Lachlan would take control of News Corp and Fox, likely continuing their current conservative editorial lines. But if the other siblings win, they could challenge or even dismantle Lachlan's leadership, possibly altering the political stance of the companies and selling off assets. |