In September 2025, Rupert Murdoch settled a long-running dispute over control of News Corp and Fox Corporation by paying a total of $3.3 billion to three of his children for their voting rights in the family trust. With their shares bought out and the trust dissolved, control of the media empire now passes fully to his eldest son, Lachlan.
This outcome became inevitable after a Nevada court blocked Murdoch’s attempt to amend the trust in Lachlan’s favour, forcing him to pursue a financial settlement instead. He raised the necessary funds through structured share sales, distributing $1.1 billion to each child in exchange for their relinquished voting power. In cementing Lachlan as his successor, who shares much of his father’s ideologies, Murdoch seeks to protect the identity of his brand and eliminate the possibility of drastic editorial shifts which could affect audience ratings.
This high-profile succession battle offers several strategic lessons for companies. First, it shows why early and proactive succession planning matters. When a company lacks a clear and reliable succession plan, it creates significant strategic uncertainty and risks reduced investor confidence. Secondly, Murdoch’s situation highlights the importance of regularly reviewing governance frameworks. Outdated voting arrangements or trusts can become legal liabilities. In this case, Murdoch’s attempt to alter an old trust triggered a court challenge he ultimately lost, which pushed him toward a costly settlement. Finally, this situation illustrates the need for companies to build options for raising liquidity into their strategies. Here, 16.9 million shares of Fox class B shares and 14.2 million shares of News Corp class B shares were sold to raise the required liquidity. Having fallbacks for exit strategies, such as through buyout provisions and share disposals, allows for quicker and more efficient dispute resolutions.
Law firms play a pivotal role in navigating complex leadership transitions. They are engaged to draft and update key documents such as voting arrangements, trust deeds, and shareholder agreements. In Murdoch’s case, Skadden, Arps, Slate, Meagher & Flom were engaged to advise on a new trust structure placing Lachlan as the sole successor to Murdoch. Additionally, firms are often engaged to manage disputes and litigation. The three siblings bought out of the trust were advised by Cravath, Swaine & Moore, who assisted in securing the sizeable settlement. Ultimately, in complex company succession battles, law firms help safeguard corporate stability by providing the strategic guidance essential for smooth leadership transitions.
Sources- FT, Reuters, BBC, Forbes
Image- Reuters
Written by Steven Collingham
Edited by Méy Fekri
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