Rupert Murdoch loses his legal battle, leaving future of media empire in the balance

The Conversation, Matthew Ricketson and Andrew Dodd, December 10, 2024

In the seemingly never-ending psychodrama surrounding Rupert Murdoch and his family, life has imitated art. Again.

A report on December 9 in The New York Times revealed details of the recent secret hearing in a Nevada probate court that was literally prompted by the epic HBO drama Succession…………………………..

The probate commissioner in Nevada who heard Rupert Murdoch’s application, Edmund Gorman “resoundingly” ruled against his attempt to change his family trust in a way that would have secured Lachlan’s position atop the global media empire.

Gorman was scathing in his ruling, saying father and son had acted in “bad faith” in their bid to change an “irrevocable” family trust that divides control of Fox News and News Corporation equally among Murdoch’s four eldest children from his first and second marriages: Prudence, Elisabeth, Lachlan and James.

In the 96-page ruling, Gorman described the plan to change the trust as a “carefully crafted charade” to permanently consolidate Lachlan’s executive roles inside News, “regardless of the impacts such control would have over the companies or the beneficiaries” of the family trust……………………………………….

Gorman’s ruling is not the end of the matter, however. It’s technically a recommendation to the Probate Court, which a district judge will ratify or reject.

Whatever the judge decides is open to appeal, which a lawyer for Rupert and Lachlan has already said they plan to do. Meanwhile, the other three siblings have released a statement welcoming the decision and expressing hope that “we can move beyond this litigation to focus on strengthening and rebuilding relationships among all family members”.

Good luck with that. The strongly worded ruling seems likely only to drive the parties further apart………………………………………………………………………………….

Lachlan’s description of James as the trust’s “troublesome beneficiary”.

By “troublesome” the plan was obliquely referring to the split in the family between Lachlan and Rupert – who are wedded to a media empire that is both right-wing and profitable – and James, who severed all ties with the company over its denialist coverage of climate change and its credulous reporting of baseless conspiracy theories about the result of the 2020 US presidential election………………………………………………………………………………….

If Prudence, Elisabeth and James can assert control, sideline Lachlan, and settle on a unified path forward, they can potentially reshape the company and redefine its journalism.

If they have already war-gamed it, and surely by now they have, the three siblings would know their greatest risk is alienating their current audiences, subscribers and advertisers.

In Australia, News operates in a virtual monopoly, so it can shapeshift with fewer consequences. But the US market is awash with emerging right-wing alternatives, each of which is eager to steal a share of the Fox audience. These viewers are the people who make Fox such a valuable commodity, and they’re the reason why it’s been so hard to stand up to Trump and his anti-democratic tactics, even on the odd occasions when Rupert and Lachlan wanted to.

The challenge is to somehow bring those audiences along for whatever transition the siblings envisage for the company. Can it be done, and if so, how?

The company’s own history suggests editorial change can happen quickly and audiences do tend to retain some loyalty. Murdoch’s takeover of The New York Post in the 1970s shows it is possible to radically change a masthead’s editorial position while expanding its audience, in that case from a mostly Democrat-leaning readership to a larger and more conservative one. But that was a moribund newspaper due for a radical makeover. There’s no guarantee it would work in reverse.

Fox News is arguably at the peak of its powers. The incentive to impose change has everything to do with journalistic standards and nothing to do with finances. In 2023–24 the Fox Corporation’s net income was US$1.5 billion (A$2.35 billion).

Even so, it must be possible to introduce incremental changes that reacquaint Fox viewers with more considered and ethical journalism without scaring them off. This wouldn’t work universally. Some of the demagogues who couldn’t cope would have to go – Sean Hannity springs to mind, as does former Fox firebrand Tucker Carlson.

Under new management, News could reintroduce some of the elements lost to Talk-TV in the mid-1980s, when the US scrapped the fairness doctrine that guaranteed balance and greater civility on the airwaves. It could ensure programs canvas different views, ask devil’s-advocate questions, and investigate issues without fear or favour.

Change of this nature wouldn’t be easy. News Corp has an echelon of editors across its global mastheads, most of whom are culture warriors and battle-hardened loyalists. They can and probably would work together to undermine progressive change.

During his tenure as the Australian head of News Corp, well before he became chair of the ABC, Kim Williams saw how the editors sneeringly white-anted his efforts to introduce reform. Even Lachlan Murdoch discovered that senior staff could undercut him. Paddy Manning recounts in his 2022 biography of Lachlan Murdoch, The Successor, that the infamous Roger Ailes did just this as Lachlan was learning the ropes at Fox in the early 2000s.

The three siblings will need resolve to dispense with those who get in their way, and they’ll need to introduce firm but gradual changes that don’t unduly scare their audiences or the market. But if Prudence, James and Elizabeth do share such a vision and are up for a fight, the world could soon be in for a fascinating media transition. more https://theconversation.com/rupert-murdoch-loses-his-legal-battle-leaving-future-of-media-empire-in-the-balance-245665?utm_medium=email&utm_campaign=Latest%20from%20The%20Conversation%20for%20December%2011%202024%20-%203195432592&utm_content=Latest%20from%20The%20Conversation%20for%20December%2011%202024%20-%203195432592+CID_9d007a3b0e7578f878c65cbd5b463722&utm_source=campaign_monitor&utm_term=Rupert%20Murdoch%20loses%20his%20legal%20battle%20leaving%20future%20of%20media%20empire%20in%20the%20balance