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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
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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.
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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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At least 13 people may have taken their own lives linked to Post Office scandal, public inquiry finds

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At least 13 people may have taken their own lives linked to Post Office scandal, public inquiry finds

At least 13 people may have taken their own lives after being accused of wrongdoing based on evidence from the Horizon IT system that the Post Office and developers Fujitsu knew could be false, the public inquiry has found.

A further 59 people told the inquiry they considered ending their lives, 10 of whom tried on at least one occasion, while other postmasters and family members recount suffering from alcoholism and mental health disorders including anorexia and depression, family breakup, divorce, bankruptcy and personal abuse.

Follow latest on public inquiry into Post Office scandal

Writing in the first volume of the Post Office Horizon IT Inquiry report, chairman Sir Wyn Williams concludes that this enormous personal toll came despite senior employees at the Post Office knowing the Horizon IT system could produce accounts “which were illusory rather than real” even before it was rolled out to branches.

Sir Wyn said: “I am satisfied from the evidence that I have heard that a number of senior, and not so senior, employees of the Post Office knew or, at the very least, should have known that Legacy Horizon was capable of error… Yet, for all practical purposes, throughout the lifetime of Legacy Horizon, the Post Office maintained the fiction that its data was always accurate.”

Referring to the updated version of Horizon, known as Horizon Online, which also had “bugs errors and defects” that could create illusory accounts, he said: “I am satisfied that a number of employees of Fujitsu and the Post Office knew that this was so.”

The first volume of the report focuses on what Sir Wyn calls the “disastrous” impact of false accusations made against at least 1,000 postmasters, and the various redress schemes the Post Office and government has established since miscarriages of justice were identified and proven.

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‘It stole a lot from me’

Recommendations regarding the conduct of senior management of the Post Office, Fujitsu and ministers will come in a subsequent report, but Sir Wyn is clear that unjust and flawed prosecutions were knowingly pursued.

“All of these people are properly to be regarded as victims of wholly unacceptable behaviour perpetrated by a number of individuals employed by and/or associated with the Post Office and Fujitsu from time to time and by the Post Office and Fujitsu as institutions,” he says.

What are the inquiry’s recommendations?

Calling for urgent action from government and the Post Office to ensure “full and fair compensation”, he makes 19 recommendations including:

• Government and the Post Office to agree a definition of “full and fair” compensation to be used when agreeing payouts
• Ending “unnecessarily adversarial attitude” to initial offers that have depressed the value of payouts, ⁠and ensuring consistency across all four compensation schemes
• The creation of a standing body to administer financial redress to people wronged by public bodies
• Compensation to be extended to close family members of those affected who have suffered “serious negative consequences”
• The Post Office, Fujitsu and government agreeing a programme for “restorative justice”, a process that brings together those that have suffered harm with those that have caused it

Regarding the human impact of the Post Office’s pursuit of postmasters, including its use of unique powers of prosecution, Sir Wyn writes: “I do not think it is easy to exaggerate the trauma which persons are likely to suffer when they are the subject of criminal investigation, prosecution, conviction and sentence.”

He says that even the process of being interviewed under caution by Post Office investigators “will have been troubling at best and harrowing at worst”.

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‘Hostile and abusive behaviour’

The report finds that those wrongfully convicted were “subject to hostile and abusive behaviour” in their local communities, felt shame and embarrassment, with some feeling forced to move.

Detailing the impact on close family members of those prosecuted, Sir Wyn writes: “Wives, husbands, children and parents endured very significant suffering in the form of distress, worry and disruption to home life, in employment and education.

“In a number of cases, relationships with spouses broke down and ended in divorce or separation.

“In the most egregious cases, family members themselves suffered psychiatric illnesses or psychological problems and very significant financial losses… their suffering has been acute.”

The report includes 17 case studies of those affected by the scandal including some who have never spoken publicly before. They include Millie Castleton, daughter of Lee Castleton, one of the first postmasters prosecuted.

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Three things you need to know about Post Office report

She told the inquiry how her family being “branded thieves and liars” affected her mental health, and contributed to a diagnosis of anorexia that forced her to drop out of university.

Her account concludes: “Even now as I go into my career, I still find it so incredibly hard to trust anyone, even subconsciously. I sabotage myself by not asking for help with anything.

“I’m trying hard to break this cycle but I’m 26 and am very conscious that I may never be able to fully commit to natural trust. But my family is still fighting. I’m still fighting, as are many hundreds involved in the Post Office trial.”

Business Secretary Jonathan Reynolds said the inquiry’s report “marks an important milestone for sub-postmasters and their families”.

He added that he was “committed to ensuring wronged sub-postmasters are given full, fair, and prompt redress”.

“The recommendations contained in Sir Wyn’s report require careful reflection, including on further action to complete the redress schemes,” Mr Reynolds said.

“Government will promptly respond to the recommendations in full in parliament.”

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Public finances in ‘relatively vulnerable position.’, OBR warns

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Public finances in 'relatively vulnerable position.', OBR warns

The UK’s public finances are in a “relatively vulnerable position”, the government’s official forecaster has warned.

The Office for Budget Responsibility (OBR) cited a drag from successive economic shocks, recent U-turns on spending cuts and higher-than-expected policy commitments.

It sounded alarm over the projected path for debt as a result, in its annual fiscal risks and sustainability report.

It saw total debt above 270% of gross domestic product (GDP) by the early 2070s – up from a current level of 96.5% – declaring that rising debts have led to “a substantial erosion of the UK’s capacity to respond to future shocks”.

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The OBR’s report highlighted damage from the COVID pandemic and cost of living crisis that followed Russia’s invasion of Ukraine.

But it raised fears that past and current government policies were further harming the sustainability of the public finances.

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The report said that the pension triple lock, for example, was now estimated to cost £15.5bn annually by 2029-30.

That was “around three times higher than initial expectations”, it said.

The lock, which rises each year in line with inflation, wage growth or 2.5% – whichever is higher – had risen by more than the 2.5% base in eight of the 13 years of operation to date, the report stated.

The watchdog said it reflected more volatile inflation than expected.

It also picked up on the latest government U-turns over planned welfare and winter fuel payment cuts in the face of rebellions by Labour MPs.

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Welfare U-turn ‘has come at cost’

The decisions are expected to leave Chancellor Rachel Reeves facing a black hole of £6.75bn while weaker-than-expected economic growth could add a further £9bn to that sum in the run-up to the autumn budget, according to Sky News projections that see a void of around £20bn.

The OBR highlighted future risks from rising defence spending and the impact of climate change.

Public sector pay demands could also prove a drag, with resident doctors voting in favour of strikes over pay.

While ministers acknowledge damage to the public purse from the U-turns, Ms Reeves has repeatedly ruled out a new wave of borrowing to fund a spending spree.

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Could the rich be taxed to fill black hole?

As such, the government has not ruled out the prospect of some form of wealth tax to help meet its commitments despite the top 1% of earners contributing almost a third of all income tax already – on top of other targeted taxes such as capital gains.

The report said: “Efforts to put the UK’s public finances on a more sustainable footing have met with only limited and temporary success in recent years in the aftermath of the shocks, debt has also continued to rise and borrowing remained elevated because governments have reversed plans to consolidate the public finances.

“Planned tax rises have been reversed, and, more significantly, planned spending reductions have been abandoned.”

Shadow chancellor Mel Stride said of the report: “The OBR’s report lays bare the damage: Britain now has the third-highest deficit and the fourth-highest debt burden in Europe, with borrowing costs among the highest in the developed world.

“Under Rachel Reeves’ economic mismanagement and Keir Starmer’s weak leadership, our public finances have become dangerously exposed – vulnerable to future shocks, welfare spending rising unsustainably, taxes rising to record highs and crippling levels of debt interest.

“Labour’s recklessness risks it all – your pension, your job, your home, your savings.”

A Number 10 spokesman said: “We recognise the realities set out in the OBR’s report and we’re taking the decisions needed to provide stability to the public finances.”

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UK to miss deadline to agree steel and aluminium tariffs

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UK to miss deadline to agree steel and aluminium tariffs

The UK will miss the White House-imposed deadline to agree a trade deal on steel and aluminium this week, according to insiders from government and industry.

Donald Trump had insisted that unless Britain could finalise the details of its metals trade deal with the US by 9 July, he would raise the tariffs faced by steel and aluminium imports from the 25% the UK currently pays to the 50% paid by other countries. If it could seal the deal, those tariffs could drop to zero.

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However, despite weeks of negotiations and promises that the deal would be completed by the end of June, talks have foundered on two key issues. First, the US is insisting that only steel “melted and poured” in the UK (in other words, forged in blast furnaces or electric arc furnaces) can be included in the deal. However, one of Britain’s biggest steel exporters to the US, Tata Steel, is not melting and pouring its UK steel because of the closure of its blast furnaces.

Second, the US is wary of the fact that while the government has taken control of British Steel, which operates Britain’s last remaining blast furnaces in Scunthorpe, the company itself still legally has Chinese owners.

Government insiders have told businesses they still expect to have a deal done by the end of this month, and that they are confident the White House will not impose the 50% tariffs for the time being. They say one of the chief challenges they face is that the administration is so overwhelmed by attempts to negotiate with other countries that they lack the bandwidth to deal with the small print on Britain’s deal.

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Inside the UK’s last blast furnaces

“As far as the Americans are concerned, the UK is already a done deal,” said one person close to the negotiations. The problem is that while a deal has been done on car and aerospace exports to the US, the metals element of the trade agreement is still some way from being signed. In the meantime, steel exports continue to incur tariffs – albeit lower than those imposed on other countries around the world.

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