Lead: On Sept. 8, 2025, the Murdoch family announced a settlement that resolves a years‑long succession dispute and secures Lachlan Murdoch’s leadership of the family’s media holdings. The agreement, valued at $3.3 billion, dissolves the existing family trust and creates a new trust that will place Lachlan and two younger sisters in the controlling position. The deal ends ongoing litigation stemming from a secret move last year to alter the trust and will leave the empire’s programming and editorial alignment intact under Lachlan’s stewardship. The new trust is set to expire in 2050, locking in governance arrangements for decades.
Key Takeaways
- The settlement is worth $3.3 billion and was announced on Sept. 8, 2025, resolving the Murdoch succession dispute.
- Prue, Liz and James Murdoch will each receive $1.1 billion for their shares, roughly 80% of those shares’ Friday close value.
- The existing irrevocable family trust will be dissolved and a new trust created that includes Lachlan, Grace and Chloe Murdoch and controls Fox Corporation and News Corp.
- The agreement ends litigation that followed last year’s attempt by Rupert and Lachlan to change the trust; the case had been heard in Reno probate proceedings.
- Lachlan Murdoch, 54, effectively secures long‑term operational control; Rupert Murdoch, 94, achieves his goal of naming a chosen successor.
- The transaction involves loans, holding companies and private stock transfers; many detailed financing terms remain sealed.
- The new trust will run until 2050, removing near‑term uncertainty about leadership and the empire’s political orientation.
Background
The current dispute grew from an earlier post‑divorce arrangement in which Rupert Murdoch agreed to equal succession rights for his four oldest children—Prue, Liz, Lachlan and James—after his death. That 20th‑century settlement became increasingly strained as Fox News and related outlets moved further right and the family’s political and personal divisions widened. The structure left open the possibility that the three siblings could combine their stakes to check Lachlan’s leadership after the trust’s eventual expiration.
Relations came to a head when Rupert and Lachlan last year sought to alter the irrevocable family trust to consolidate Lachlan’s control. The move, which opponents characterized as secretive, triggered a legal battle in Nevada probate court; a commissioner criticized the maneuver in a strongly worded opinion and the matter proceeded through appeals. The litigation exposed long‑running family tensions and prompted intense media scrutiny, making a negotiated exit a pragmatic option for both sides.
Main Event
Negotiations culminated in a buyout in which the three older siblings will be paid $1.1 billion each for their shares, producing the $3.3 billion headline figure. Under the agreement the current trust will be terminated and a new Murdoch family trust established that names Lachlan alongside his two younger sisters, Grace and Chloe, as principal participants. That new entity will hold the controlling stakes in News Corp and Fox Corporation.
Although Lachlan has been running large parts of the business for several years, the deal removes the legal uncertainty that followed last year’s court battles. The settlement also ends the appeal and related sealed filings and transcripts that had proliferated over the past nine months and attracted about 50 lawyers on the case docket. Many of the transactional details—loans, holding structures and the precise mechanics of the share transfers—were finalized in private and remain subject to confidentiality.
From a governance standpoint, the new trust’s 2050 termination date effectively guarantees Lachlan’s control through mid‑century and limits immediate opportunities for the older siblings to reassert influence. The three siblings who sold their shares are reported to be less politically aligned with Lachlan; the cash payments substantially increase their individual liquidity and reduce their stake in directing company policy going forward.
Analysis & Implications
Politically and editorially, this settlement cements a continuity that will likely preserve the conservative tilt of flagship outlets such as Fox News, The New York Post and The Wall Street Journal while Lachlan remains in charge. Media‑market observers say that ownership and editorial direction are linked: control over board seats and voting shares enables long‑term strategic choices about talent, programming, and corporate risk tolerance.
Economically, a $3.3 billion buyout represents a significant liquidity event but is manageable relative to the combined market value of News Corp and Fox Corporation. The use of loans and holding structures to finance the transaction is a common technique in family buyouts, allowing the buying side to spread payments and preserve operational cash flow. However, leverage introduces balance‑sheet risk if market conditions deteriorate.
Legally, the resolution removes a rare, high‑profile probate dispute that exposed internal trust administration questions and fiduciary conduct allegations, including criticisms of advisors involved in the attempted trust change. The commissioner’s critique of the prior maneuver had posed reputational and legal risks for those associated with the effort; settling the dispute curtails further courtroom revelations but leaves some disputed factual narratives intact in the public record.
Comparison & Data
| Beneficiary | Payment | Approx. % of Stock Value |
|---|---|---|
| Prue Murdoch | $1.1 billion | ~80% |
| Elizabeth (Liz) Murdoch | $1.1 billion | ~80% |
| James Murdoch | $1.1 billion | ~80% |
| Total | $3.3 billion |
The table isolates the headline numbers disclosed: three $1.1 billion payouts composing the $3.3 billion settlement. Those payouts were reported to equal about 80 percent of each sibling’s stake value at the most recent close. While public markets provide a reference for valuation, private family transfers often diverge from daily market prices because of control premiums, transfer restrictions and negotiated concessions.
Reactions & Quotes
“A carefully crafted charade to permanently cement Lachlan Murdoch’s control,”
Edmund Gorman, Nevada probate commissioner
The probate commissioner used sharply critical language about the earlier attempt to change the trust, language that became central to the litigation and appellate arguments. His opinion became a rallying point for the objecting siblings when they challenged the trust alterations in court.
“Fox was lying to its audience,”
James Murdoch, as quoted in a February profile in The Atlantic
James’s public remarks in the profile intensified tensions and triggered requests by the other side for sanctions, illustrating how public statements outside court filings affected the family’s bargaining posture and possibly accelerated settlement negotiations.
Unconfirmed
- Exact financing terms, including lenders, interest rates and collateral used to fund the $3.3 billion buyout, have not been publicly disclosed.
- Whether any non‑cash concessions (retained options, seats or side agreements) were part of the deal remains unverified due to sealed documents.
- Internal voting arrangements and governance covenants within the new trust—beyond the high‑level membership of Lachlan, Grace and Chloe—are not yet public.
Bottom Line
The Murdoch family settlement ends a public, emotionally charged succession fight by converting disputed trust positions into cash and a reconstituted trust that secures Lachlan Murdoch’s long‑term leadership. For media markets and political observers, the result reduces near‑term uncertainty about the editorial direction of some of the English‑speaking world’s most influential outlets.
At the same time, the deal leaves several substantive questions unanswered—chiefly around financing details and the full governance terms of the new trust—because many documents remain sealed. Investors, regulators and media watchdogs will likely scrutinize subsequent disclosures and corporate filings for signs of financial leverage, governance limits, or side agreements that could affect company strategy and risk.