By Dawn Chmielewski
RENO, Nevada (Reuters) – A closed-door court battle over control of Rupert Murdoch’s media empire begins Sept. 16, and could determine the future of Fox News and the Wall Street Journal.
Murdoch, 93, is attempting to change the terms of the family’s irrevocable trust to ensure his newspapers and television networks remain under control of his eldest son and chosen heir, Lachlan Murdoch, according to the New York Times, which obtained a sealed court document detailing the succession drama.
Reuters and other news organizations are attempting to gain access to sealed court records, and to open the court hearings in Reno, Nevada, before probate commissioner Edmund J. Gorman Jr.
The trust lays out a scenario on how a potential takeover could occur, according to a source who has seen the documents. The trust is the vehicle through which the elder Murdoch controls News Corp and Fox, with roughly a 40% stake in voting shares of each company. Murdoch also holds a small amount of shares of the companies outside the trust.
Upon Rupert Murdoch’s death, News Corp and Fox voting shares will be transferred to his four oldest children – Prudence, Elisabeth, Lachlan and James. Potentially, three of the heirs could out-vote a fourth, setting up a battle over the future of the companies, even as Lachlan Murdoch runs Fox and is sole chair of News Corp.
Rupert Murdoch’s proposed amendment to the trust would block any interference by three of Lachlan’s siblings, who are more politically moderate, the Times reported, citing a sealed court document.
Lachlan Murdoch is viewed as ideologically aligned with his conservative father. James Murdoch, who has donated to progressive political groups, resigned in 2020 from the News Corp board, citing disagreements over editorial content. James also has criticized the U.S. media for amplifying disinformation about the 2020 election results ahead of the Jan. 6 attack on the Capitol. He hosted a fundraiser for U.S. President Joe Biden in 2021, before the Democrat ended his re-election campaign.
A hearing to determine whether Rupert Murdoch’s proposed changes to the trust would benefit his heirs will take place in a Reno courtroom, well outside the media hubs from which the conglomerate operates in New York, Los Angeles, London and Sydney.
“He’s going to have to prove that these changes are being made in good faith,” said Shane Jasmine Young, a Nevada attorney who specializes in estate planning. That means demonstrating any changes would not “sacrifice the rights, or discriminate against, any of the parties that this trust was intended to protect.”
A group of news organizations, including the New York Times, CNN, The Associated Press, National Public Radio, The Washington Post and Reuters, have asked to intervene in the matter, arguing that the court should unseal the records and provide access to the proceedings.
“Though some litigants may desire secrecy and some courts indulge this desire, this level of sealing does not pass constitutional muster,” attorneys for the Access Coalition of news organizations wrote in a memo to the court, arguing the First Amendment calls for civil judicial proceedings and records to be open to the public.
The news organizations say the public has immense interest in which of Murdoch’s children will succeed him at the helm of the influential media empire, an outcome that will affect thousands of jobs, millions of worldwide media consumers and the political landscape.
Spokespeople for Lachlan, James and Elisabeth Murdoch declined comment. A spokesman for Rupert Murdoch referred inquiries to his attorney, who did not respond to a request for comment. An attorney representing James, Elisabeth and Prudence also could not be reached for comment.
“The reason this is interesting is the outsized role that Fox (News) has played in the political landscape, in the U.S. and around the world,” said Paul Hardart, director of the Entertainment, Media and Technology Program at New York University’s Stern School of Business. “I think this is a reflection of the future of not only the business, but also how conservative media is handled going forward.”
(Reporting by Dawn Chmielewski in Los Angeles; Editing by David Gregorio)
A recent Review-Journal letter to the editor mischaracterized Sen. Catherine Cortez Masto’s Southern Nevada Economic Development and Conservation Act, also known as the Clark County Lands bill. As the former executive director of the Nevada Conservation League, I wholeheartedly support this legislation, so I wanted to set the record straight.
Sen. Cortez Masto has been working on this bill for years in partnership with state and local governments, conservation groups like the NCL and local area tribes. It’s true that the Clark County lands bill would open 25,000 acres to help Las Vegas grow responsibly, while setting aside 2 million acres for conservation. It would also help create more affordable housing throughout the valley while ensuring our treasured public spaces can be preserved for generations to come.
What is not correct is that the money from these land sales would go to the federal government’s coffers. In fact, the opposite is true.
The 1998 Southern Nevada Public Lands Management Act is a landmark bill that identified specific public land for future sale and created a special account ensuring all land sale revenues would come back to Nevada. In accordance with that law 5 percent of revenue from land transfers goes to the state of Nevada for general education purposes, 10 percent goes to the Southern Nevada Water Authority for needed water infrastructure and 85 percent supports conservation and environmental mitigation projects in Southern Nevada. This legislation has provided billions to Clark County and will continue to benefit generations of Southern Nevadans. Sen. Cortez Masto’s lands bill builds upon the act’s success.
So here’s the good news: All of the money generated from land made available for sale under Sen. Cortez Masto’s bill would be sent to the special account created by the 1998 law. Rather than going to an unaccountable federal government, the proceeds would continue to help kids in Vegas get a better education, bolster outdoor recreation and modernize Southern Nevada’s infrastructure.
I know how important it is that money generated from the sale of public land in Nevada stay in the hands of Nevadans, and so does the senator. That’s why she opposed a Republican effort last year to sell off 200,000 acres of land in Clark County and other areas of the country that would have sent those dollars directly to Washington.
Public land management in Nevada should benefit Nevadans. We should protect sacred cultural sites and beloved recreation spaces, responsibly transfer land for affordable housing when needed and ensure our state has the resources it needs to grow sustainably. I will continue working with Sen. Cortez Masto to advocate for legislation, such as the Clark County lands bill, that puts the needs of Nevadans first.
Paul Selberg writes from Las Vegas.
click to expand photos
Las Vegas High’s baseball team claimed a 3-2 home win over Coronado on Friday.
Las Vegas (9-13-1) next hosts Rancho at 10 a.m. Saturday. Coronado (13-14) hosts Chaparral at 3:30 p.m. Monday.
Contact Alex Wright at awright@reviewjournal.com. Follow @AlexWright1028 on X.
LAS VEGAS (FOX5) — Nevada’s jobless rate is holding steady, but the state is still adding jobs.
A new report from DETR shows February’s unemployment rate unchanged at 5.3 percent, with the labor force growing by nearly 3,800 people.
MORE ON FOX5: Nevada unemployment rate rises to 5.3% in January
Nevada now has about 1.6 million nonfarm jobs, up 2.2 percent over the past year and 1,500 more jobs than in January.
“This month’s report shows a strengthening labor market,” said David Schmidt, Chief Economist. ”Compared to the report for January, the pace of job gains in the past year increased from 1.9% to 2.2%, building on what was already the fastest pace of job growth in the country. While the unemployment rate remained stable, the labor force participation rate rose to 63.7%, 1.7 percentage points higher than the national level.”
In Las Vegas, employment ticked up by 1,100 jobs in February, about 0.1 percent, and is up more than 25,000 jobs compared to last year.
Reno added 1,000 jobs on the month, while Carson City shed about 200 but is still slightly above where it was a year ago.
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