The Murdoch family has settled legal action over a trust at the heart of who will control the media empire when 94-year-old founder Rupert Murdoch dies, News Corporation announced.
The company’s chair, Rupert Murdoch’s son Lachlan, will continue to be “important to guiding the company’s strategy and success”.
He and two of his sisters, Grace and Chloe will end up with the bulk of the family shares in News Corp.
Rupert Murdoch had wanted to change a trust which gave four of his children control of the shareholding in News Corp so that eldest son Lachlan would take the reins when he dies.
The other three of his children -- James, Elisabeth and Prudence -- who opposed the move, will end up with cash, funded by the sale of News Corp shares.
“The trustee and beneficiaries of the Murdoch Family Trust informed the company that they have reached a mutual resolution of the legal proceedings in Nevada related to the MFT, resulting in the termination of all litigation,” the News Corp said today.
New trusts -- with about one-third of News Corp’s shares -- will be established for the benefit of Lachlan Murdoch and his sisters Grace and Chloe.
LGC Holdco, a company owned by Lachlan, Grace and Chloe, will have about 33.1% of News Corp and 36.2% of Fox.
Prudence MacLeod, Elisabeth Murdoch and James Murdoch will cease to be beneficiaries in any trust holding shares in News Corp or Fox Corporation.
And new trusts for the benefit of Prudence, Elisabeth and James will receive cash funded in part using proceeds from the public sale of about 14.2 million shares of News Corp and 16.9 million shares of Fox Corporation previously held by the trust.
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