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Airlie voted in favour of the Starboard resolution because it, and the investors whose money it manages, believe that one share should equal one vote. “We will always support that, whilst acknowledging what a good job Lachlan [Murdoch] and the management team have done,” Williams says.
After Rupert Murdoch’s retirement last year, following seven decades of building a global media business, his eldest son Lachlan succeeded him as chair of News Corp, and executive chair and CEO of Fox.
“Everything’s coming up Lachlan when you look at it,” says Williams. “Both of his companies have performed superbly over the past year and that must be particularly pleasing for him since Rupert’s taken more of a backseat role.”
“Everything’s coming up Lachlan when you look at it,” says Matt Williams, head of Australia equities at Airlie Funds Management.Credit: Louie Douvis
Fox grew its annual net profit by almost a quarter in the year to June 30. Its shares have soared 60 per cent over the past year. News Corp’s net earnings in that period rose almost 90 per cent. Meanwhile, its shares have gained one-third over the past year.
Still, Lachlan’s position remains vulnerable because of a battle over the future of the Murdoch empire with his siblings.
It was The New York Times that revealed that Rupert Murdoch in late 2023 had moved to change the terms of the Murdochs’ irrevocable family trust so that Lachlan, his chosen successor, would remain in charge of his global television and publishing empire.
When Rupert Murdoch dies, the trust hands control of those businesses equally to the four eldest children, Prudence, Elisabeth, Lachlan and James, who may not agree on how to run them. Potentially, three of the heirs could out-vote a fourth, setting up a battle over the future of the companies.
Not surprisingly, Murdoch senior’s bid to have the terms of the trust changed in court has caused fissures in the family. Prudence, Elisabeth and James say such changes violate the trust’s original conditions and they would be wrongfully disenfranchised. Murdoch senior had dubbed his planned trust changes Project Harmony.
The trust court battle has also given ammunition to activists such as Starboard. The latter says the complicated family dynamics and the legal spat have put the stability and strategic direction of News Corp at risk. Murdoch has six children, but only four have a voting interest in the trust.
More legal battles loom for Murdoch’s companies next year. Smartmatic, a voting machine company, is suing Fox News for defamation alleging damages of $US2.7 billion, which relates to Fox News’ reporting on 2020 voting fraud claims in the US election.
Rupert Murdoch is moving ensure that his eldest son and chosen successor, Lachlan, remains in charge of his vast collection of television networks and newspapers.Credit: The New York Times
Fox has already paid out $US787.5 million to voting machine company Dominion Voting Systems last year over false claims of rigged voting.
Smartmatic, which earlier this year won a lawsuit against media group Newsmax, has said it also wants to probe the Murdoch family trust fight. It claims it might provide insight on Fox Corp’s involvement in editorial matters.
Separately, a lawsuit has been brought by six US pension funds seeking to hold current and former company officials liable for costs related to Fox News’ reports regarding alleged vote rigging in 2020. Fox Corporation has moved to have the case dismissed.
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Meanwhile, in Britain, Prince Harry is suing The Sun and the now defunct News of the World in London’s high court, alleging that private information about him was obtained unlawfully between 1996 and 2011. News has already settled other similar cases in Britain.
All those cases ensure that Rupert Murdoch, his family and his companies will remain in the headlines next year, which is why he might just need that holiday.
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