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A momentous court battle over the fate of Rupert Murdoch’s media empire gets under way in Nevada today.

At stake is the future of a string of newspapers and television channels consumed by millions of people around the world, as well as thousands of jobs – and billions of pounds.

The media mogul, who turned 93 this year, has spent decades building up his news brands, making them some of the most powerful and influential in the Western world.

But now, as he nears the end of his life, a rift has opened up in his family – and raised questions about what kind of legacy he will leave behind.

The case will decide who controls Murdoch’s family trust after he is gone and which of his children will have major voting rights in his companies. And it could result in the billionaire’s heir apparent Lachlan Murdoch being out-manoeuvred by some of his less conservative siblings.

Rupert Murdoch and Elena Zhukova. Pic: News Corp
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Rupert Murdoch and his wife Elena Zhukova. Pic: News Corp

What are his family members fighting over?

The row centres around future power and influence over Mr Murdoch‘s two companies – News Corp and Fox.

News Corp owns newspapers including The Wall Street Journal and the New York Post in the US, The Australian, The Herald Sun and The Daily Telegraph in Australia, and The Sun, The Times and The Sunday Times in the UK.

Also under News Corp’s wing is publishing giant HarperCollins, along with several Australian TV channels.

Meanwhile, Fox News, Fox Sports and streaming service Tubi form part of his other major company.

Mr Murdoch has a roughly 40% stake in voting shares of each company.

Sky News, which Mr Murdoch launched in the UK in 1989, is no longer part of his empire.

At the end of 2018, Fox’s film entertainment assets, such as The Simpsons and the Avatar film franchise, were sold to Disney – while the company’s 39% stake in Sky was sold to Comcast.

Lachlan Murdoch and Sarah Murdoch attend the Vanity Fair Oscar party in Beverly Hills during the 92nd Academy Awards, in Los Angeles, California, U.S., February 9, 2020. REUTERS/Danny Moloshok
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Lachlan Murdoch and his wife Sarah in February 2020. Pic: Reuters

Who is involved in the case and why?

Sorting out Mr Murdoch’s inheritance was never going to be easy – he has six children and has been married five times, most recently to retired molecular biologist Elena Zhukova.

However, it had long been presumed that his business succession plans were largely settled in 1999, following his divorce from his second wife Anna.

That year the Murdoch Family Trust was founded – establishing the principle that, when he died, his News Corp and Fox’s voting shares would be divided between his four oldest children – Prudence, Elisabeth, Lachlan and James.

Following the “irrevocable” agreement, Mr Murdoch began integrating some of his children into roles at his companies.

However, following a shift in relations with some of his offspring, it emerged earlier this year that the media mogul had changed his mind.

The New York Times revealed that Mr Murdoch had decided he wanted to change the terms of the trust, to ensure his eldest son Lachlan would go on to run his businesses without “interference” from his other siblings.

The newspaper reported that James, Elisabeth and Prudence “were caught completely off-guard” by the move and had decided to unite to stop him.

Lachlan has reportedly taken his father’s side in the case.

Kathryn Hufschmid and James Murdoch arrive at the Vanity Fair Oscar party after the 96th Academy Awards, known as the Oscars, in Beverly Hills, California, U.S., March 10, 2024. REUTERS/Danny Moloshok
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James Murdoch with his wife Kathryn Hufschmid at the Oscars earlier this year. Pic: Reuters

Why did Murdoch change his mind?

The billionaire’s efforts to tweak the terms of the family trust come amid signs that he has increasingly favoured Lachlan as his chosen heir in recent years.

When Mr Murdoch revealed last year he was stepping down as chair of Fox and News Corp, it was announced that his eldest son would become the sole chair of News Corp – while also continuing as executive chair and chief executive of Fox.

The main reason, it is thought, is politics. Lachlan is seen as more similar and aligned with his father’s right-wing views, while James, Elisabeth and Prudence are seen as more moderate in their beliefs.

Indeed, the media mogul’s decision to give Lachlan “permanent, exclusive control” came amid worries over the “lack of consensus” among his children about the future of the Murdoch brands, according to court documents seen by The New York Times.

FILE - In this Jan. 29, 2009 file photo, Elisabeth Murdoch, daughter of Rupert Murdoch, takes part in a breakfast meeting about 'Digital Britain' at Downing Street in London. The latest twist in the family drama came Thursday, June 11, 2015, with news that James Murdoch, the 42-year-old second son, would take over as CEO of Twenty-First Century Fox Inc., leapfrogging 43-year-old first son Lachlan in the line of succession. "This cements the complete exclusion of Elisabeth from the gig, as well a
Image:
Elisabeth Murdoch, pictured in 2009. Pic: AP

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James has been openly critical of Fox News – and recently endorsed Democrat Kamala Harris for president – while his sister Elisabeth has also “privately expressed discomfort about being associated with Fox News”, according to the Wall Street Journal.

The newspaper, which is owned by Mr Murdoch, also reported that “putting more power in Lachlan’s hands is meant to ensure stability at the businesses and avoid a confusing ownership structure in coming years”.

It quoted sources who said Mr Murdoch had been “dismayed that James and his wife seemed to be embarrassed by Fox yet were happy to enjoy the fruits of its financial success”, with the two not said to be on speaking terms.

Rupert Murdoch at his annual party at Spencer House, St James' Place in London. Picture date: Thursday June 22, 2023.
Image:
Mr Murdoch turned 93 earlier this year. Pic: PA


So what’s going to happen?

Despite the family rift, there is one thing the Murdochs involved agree on – they do not want their media rivals to feast on their fallout.

Consequently, the hearing to settle the dispute is being held in private – despite attempts from news agencies to grant public access – behind closed doors at the Washoe County Courthouse in Reno, Nevada, with probate commissioner Edmund J Gorman Jr due to rule on the case.

An earlier hearing concluded that Mr Murdoch could change the terms of the trust – if he could demonstrate he was acting in good faith, for the sole benefit of his heirs.

If the billionaire wins, News Corp and Fox are expected to continue along the same path after his death under Lachlan’s leadership, with, for example, Fox News continuing to loudly back the Republican Party in the US.

However, if the three siblings win, a battle over the future of the firms is likely to ensue. In theory, they could challenge the political leaning of Murdoch’s newspapers and channels, or even sell them off – as they could out-vote Lachlan on key decisions.

A third possibility is a compromise or some other kind of settlement being reached. Talks have reportedly been held in recent weeks over James and his sisters selling their stakes in the trust. However, these are said to have failed – possibly due to the potentially high sums involved.

FILE PHOTO: Media Mogul Rupert Murdoch (C) poses for a photograph with his sons Lachlan (L) and James as they arrive at St Bride's church for a service to celebrate the wedding between Murdoch and former supermodel Jerry Hall which took place on Friday, in London, Britain March 5, 2016. REUTERS/Peter Nicholls/File Photo
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Rupert Murdoch with his sons Lachlan (left) and James (right) at his wedding to Jerry Hall in 2016. Pic: Reuters

The Murdochs involved have made no public statement on the case, with their spokespeople either declining to comment or not responding to requests.

It also comes amid uncertain times for the future of the news industry.

In an interview earlier this summer with Sky News Australia – which is separate from Sky News in the UK – Mr Murdoch predicted that printed newspapers will die out within 15 years due to changes in the ways people consume news.

If he is right, some of the tough questions facing his successors could be far bigger than just which party to back.

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Train drivers accept pay deal, ending two-year dispute at 16 companies, ASLEF says

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Train drivers accept pay deal, ending two-year dispute at 16 companies, ASLEF says

Train drivers have voted overwhelmingly to accept a multi-year pay deal, ending a two-year dispute at 16 rail companies, their union ASLEF has announced.

Members voted by 96% in favour of the pay rise, which is worth 15% over three years, the organisation said.

The offer was made by the new Labour Government within weeks of the party winning the general election.

It ends what ASLEF called the longest train drivers’ strike in recent history, during which staff took 18 days of industrial action.

Mick Whelan, ASLEF’s general secretary, said: “It is with great pleasure that we can announce the end of the longest train drivers’ strike in history.

“The strength and resilience and determination shown by train drivers to protect their hard-won and paid-for terms and conditions against the political piracy of an inept and destructive Tory government has prevailed.”

ASLEF had accused the previous Conservative government of “sitting on its hands” and refusing to negotiate, prolonging the length of the strikes.

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Mr Whelan said it was “not a fight we sought or wanted”, but after five years without a pay rise and “working for private companies who declared millions of pounds in profits and dividends to shareholders”, drivers needed a “dent in the cost of living”.

He thanked the new transport secretary Louise Haigh for “entering the room” and finding an “equitable way forward”, saying that now trains will run in the interest of the passenger and taxpayer.

He also hit out a people conflating the recent bout of public sector pay rises with Labour’s decision to cut the winter fuel allowance for pensioners, saying they should “be ashamed”.

“Now we will get back to our day job of seeking a green, well-invested, vertically-integrated and safe public railway,” his statement concluded.

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Embattled Post Office chief executive Nick Read resigns

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Embattled Post Office chief executive Nick Read resigns

Nick Read is to end his torrid tenure as chief executive of the Post Office as he prepares to give evidence to the inquiry into the Horizon IT scandal.

Sky News has learnt that Mr Read, who took over five years ago, has decided to resign from the government-owned company.

He initially stepped back temporarily from the post to focus on his evidence to the inquiry into the IT debacle that affected hundreds of sub-postmasters.

In a statement confirming his departure after Sky News reported that it was imminent, Mr Read said: “It has been a great privilege to work with colleagues and Postmasters during the past five years in what has been an extraordinarily challenging time for the business and for Postmasters.

“There remains much to be done for this great UK institution but the journey to reset the relationship with Postmasters is well underway and our work to support justice and redress for Postmasters will continue.”

Mr Read had been criticised for his leadership of the Post Office for some time, having been accused of being fixated with his pay package by its former chairman, Henry Staunton.

Mr Staunton was sacked earlier this year by the then business secretary, Kemi Badenoch.

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Nigel Railton, a former Camelot executive, was installed as Mr Staunton’s successor.

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Under his leadership, Mr Read had raised the idea of handing partial ownership to Post Office workers, although little progress has been made on such a scheme because of the company’s financial travails.

Mr Read will leave the Post Office next March, and his duties will be assumed while he focuses on the Horizon inquiry by Neil Brocklehurst, the company’s interim chief operating officer.

The outgoing chief executive will be paid during his notice period but will not receive any additional payoff, according to a government source.

A spokesperson for the Department for Business and Trade declined to comment.

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No change in CPI inflation ahead of interest rate decision – but another measure ticks unexpectedly up

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No change in CPI inflation ahead of interest rate decision - but another measure ticks unexpectedly up

There’s been no change in the rate of price rises, official inflation figures showed.

The rate of inflation stood at 2.2% in August, the Office for National Statistics said, the same as a month earlier.

The announcement comes the day before interest rate setters at the Bank of England decide on the cost of borrowing, controlled through the interest rate.

Markets are expecting only a 26% chance of an interest rate cut.

Rises behind the headline figure

But another measure of inflation ticked unexpectedly up. Core inflation rose to 3.6%, even higher than economists had forecast.

Bank officials closely watch core inflation as it gives a reading on price rises without elements like food and energy, which are prone to rise and fall quickly.

A rise in core inflation to 3.5% had been anticipated.

An increase was also seen in services inflation, which rose from 5.2% in July to 5.6% in August. This measure encompasses the culture and hospitality sectors.

Why?

The main item acting to bring up inflation was airfares to European destinations, which showed a large rise during the months, following a fall a year ago, the ONS said.

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Lower restaurant and hotel costs, and a cheaper price for refilling a tank of petrol or diesel, was a balance against the air far rise, as was slightly cheaper shop-bought alcohol.

Cheaper oil prices also meant the cost of raw materials was down, which meant the cost of goods leaving factories slowed.

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Responding to the figures chief secretary to the Treasury, Darren Jones, said: “Years of sky-high inflation have taken their toll, and prices are still much higher than four years ago.

“So, while more manageable inflation is welcome, we know that millions of families across Britain are struggling, which is why we are determined to fix the foundations of our economy so we can rebuild Britain and make every part of the country better off.”

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