The multibillion-dollar deal brings an end to legal conflicts that captured global attention and cements a clear future for the companies at the center of American and international news.
The settlement restructures the Murdoch Family Trust, a so-called irrevocable trust at the center of the litigation that pitted Rupert and Lachlan on one side and other children of Rupert’s, Prudence MacLeod, Elisabeth Murdoch and James Murdoch, on the other. The legal dispute arose when Rupert went to court to attempt to change the trust, moving from a structure of equal voting shares held by the four siblings into one with control held by Lachlan.
Under the settlement, voting control for the trust’s stakes will rest with Lachlan, who will remain chairman and CEO of Fox Corporation and will assume the managing director role for a newly created entity. Rupert, now 94, will continue in a figurehead capacity as chairman emeritus of the companies, maintaining ceremonial leadership but no direct voting control.
The remaining core value of the old trust will be allocated to new trusts benefiting Lachlan Murdoch and Rupert Murdoch’s youngest daughters, Grace and Chloe (children with ex-wife Wendi Deng), creating control through their vehicle, LGC Holdco, LLC.
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.
