Lachlan Murdoch secures control as Murdoch family reaches $3.3 billion deal to end succession battle

The Murdoch family’s decades-long succession feud has reached its dramatic conclusion, with Rupert Murdoch’s eldest son, Lachlan Murdoch, cementing his control over the family’s global media empire. The agreement, announced on Monday and valued at $3.3 billion, brings an end to years of legal wrangling and personal tensions that have gripped one of the world’s most powerful media dynasties.

The deal ensures that the Murdoch empire — including Fox News, The Wall Street Journal, The Times of London, and The New York Post — will remain firmly under Lachlan’s leadership for decades to come. It also guarantees the continuation of Rupert Murdoch’s conservative editorial legacy after his death.

What does the Murdoch succession deal involve?

Under the terms of the agreement, Lachlan’s three older siblings — Prudence (Prue), Elisabeth (Liz), and James Murdoch — will receive $1.1 billion each in exchange for all of their shares in the family businesses. Those shares, which had been held in the family’s irrevocable trust, represent around 80% of their current market value.

The existing trust, created during Rupert’s divorce from his second wife, Anna Mann, will now be dissolved. In its place, a new Murdoch Family Trust will be established, consisting of Lachlan and his two younger half-sisters, Grace and Chloe, Rupert’s children with his third wife, Wendi Deng.

This restructuring secures Lachlan’s position at the helm of Fox Corporation and News Corp, safeguarding the family’s control over its media holdings at least until 2050, when the new trust is due to expire.

What level of control will Lachlan Murdoch now have at Fox News?

As part of the deal, Prudence MacLeod, Elisabeth Murdoch, and James Murdoch will exit as beneficiaries of any trust holding shares in Fox or News Corp.

Their payout will be partly funded by selling 16.9 million Fox Class B shares and 14.2 million News Corp Class B shares previously held by the trust.

The remaining shares will move to LGC Holdco, LLC, controlled by trusts for Lachlan, Grace, and Chloe Murdoch. This will include 36.2% of Fox Class B stock and a small portion of Class A shares.

Voting control of these shares will rest solely with Lachlan Murdoch until 2050, while Rupert Murdoch will remain Chairman Emeritus.

Why was the deal in Murdoch succession battle necessary?

The original trust granted Rupert’s four oldest children equal voting power over the future of the empire upon his death. This arrangement was meant to ensure fairness, but as Fox News moved further to the political right, divisions within the family deepened.

While Lachlan aligned closely with Rupert’s conservative vision, his siblings — particularly James — became increasingly critical of Fox’s editorial stance. This ideological rift created a very real threat: if Lachlan’s siblings formed a bloc, they could have overruled him and potentially shifted the company’s political direction.

As the old trust was set to expire in 2030, Rupert and Lachlan faced another risk: any of the siblings could sell their shares to outside investors, potentially ending the family’s control altogether.

The settlement, therefore, represents not only a financial transaction but also a decisive consolidation of editorial and corporate power.

How did the Murdoch succession battle escalate?

The Murdoch succession fight has played out like a modern corporate drama, inspiring HBO’s hit series Succession.

Tensions boiled over last year when Rupert and Lachlan attempted a secret manoeuvre, codenamed “Project Family Harmony”, to alter the terms of the trust and sideline the other siblings. This effort was struck down in a Nevada probate court, with Commissioner Edmund Gorman sharply criticising the plan as “a carefully crafted charade” designed to cement Lachlan’s dominance.

The court defeat emboldened Prue, Liz, and James, who continued to fight their corner while Rupert and Lachlan launched an appeal. The legal battle spilled into the public eye when James gave a highly critical interview in The Atlantic, accusing his father of misogyny and Fox News of “lying” to its audience.

Behind the scenes, negotiations continued in secret. The turning point came in March, when both sides met at New York’s prestigious Harvard Club to explore a settlement. After months of intense talks — involving high-powered lawyers, family representatives, and Rupert’s trusted ally Rebekah Brooks — an agreement was finally reached late last week.

What does this mean for Rupert Murdoch’s legacy?

At 94, Rupert Murdoch has achieved what he long sought: to secure his life’s work and preserve his media empire under the leadership of his chosen heir.

For Lachlan, 54, the deal ends years of uncertainty. He has been effectively running the family businesses for several years, but faced constant speculation about his authority. With the legal dispute settled and control consolidated, he can now steer Fox and News Corp with confidence.

For Prue, Liz, and James, the settlement represents both a financial windfall and a clean break from an empire whose politics they increasingly opposed.

How did Fox stock react?

Fox Corporation (NASDAQ:FOXA) stock fell 0.8% in after-hours trading Monday following the company’s announcement of a resolution to the Murdoch Family Trust legal proceedings and a related secondary offering of Class B common stock.

In practical terms, little will change immediately. Lachlan remains CEO of both Fox Corporation and News Corp, roles he has held since Rupert stepped back from day-to-day operations.