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.
Image: 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.
Advertisement
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.
Image: 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.
Image: 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 chairof 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.
Image: Elisabeth Murdoch, pictured in 2009. Pic: AP
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.
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.
Image: 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.
The daughter of a Post Office victim has told Sky News she suffered “dark thoughts of suicide” in the years after her mother was accused of stealing.
Kate Burrows was 14 years old when her mother, Elaine Hood, was prosecuted and subsequently convicted in 2003.
The first public inquiry report on the Post Office – examining redress and the “human impact” of the scandal – is due to be published today.
“I’ve suffered with panic attacks from about 14, 15 years old, and I still have them to this day,” Kate said.
“I’ve been in and out of therapy for what feels like most of my adult life and it absolutely categorically goes back to [what happened].”
Image: Kate and Rebecca with their mother, Elaine
Kate, along with others, helped set up the charity Lost Chances, supporting the children of Post Office victims. She hopes the inquiry will recognise their suffering.
“It’s important that our voices are heard,” she said. “Not only within the report, but in law actually.
More on Post Office Scandal
Related Topics:
“And then maybe that would be a deterrent for any future cover-ups, that it’s not just the one person it’s the whole family [affected].”
Her sister, Rebecca Richards, who was 18 when their mother was accused, described how an eating disorder “escalated” after what happened.
“When my mum was going through everything, my only control of that situation was what food I put in my body,” she said.
Image: Elaine with her husband
She also said that seeing her mother at court when she was convicted, would “stay with me forever”.
“The two investigators were sat in front of my dad and I, sniggering and saying ‘we’ve got this one’.
“To watch my mum in the docks handcuffed to a guard… not knowing if she was going to be coming home… that is the most standout memory for me.”
The sisters are hoping the inquiry findings will push Fujitsu into fulfilling a promise they made nearly a year ago – to try and help the children of victims.
Image: The siblings were teenagers when their mum was unfairly prosecuted
Last summer, Kate met with the European boss of the company, Paul Patterson, who said he would look at ways they could support Lost Chances.
Despite appearing at the inquiry in November last year and saying he would not “stay silent” on the issue, Kate said there has been little movement in terms of support.
“It’s very much a line of ‘we’re going to wait until the end of the inquiry report to decide’,” she said.
“But Mr Patterson met us in person, looked us in the eye, and we shared the most deeply personal stories and he said we will do something… they need to make a difference.”
Please use Chrome browser for a more accessible video player
1:38
2024: Paula Vennells breaks down in tears
Fujitsu, who developed the faulty Horizon software, has said it is in discussions with the government regarding a contribution to compensation.
The inquiry will delve in detail into redress schemes, of which four exist, three controlled by the government and one by the Post Office.
Victims of the scandal say they are hoping Sir Wyn Williams, chair of the inquiry, will recommend that the government and the Post Office are removed from the redress schemes as thousands still wait for full and fair redress.
A Department for Business and Trade spokesperson said they were “grateful” for the inquiry’s work, describing “the immeasurable suffering” victims endured and saying the government has “quadrupled the total amount paid to affected postmasters”, with more than £1bn having now been paid to thousands of claimants.
Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK
Donald Trump has warned that all goods from Japan and South Korea will face tariffs of 25% from 1 August.
The announcement, via his Truth Social platform, marks the restart of the threatened “liberation day” escalation that was paused in April, for 90 days, to allow for negotiations to take place with all US trading partners.
The president showed off copies of letters to the leaders of both Japan and South Korea informing them of the tariff rates. Those duties will come on top of sector-specific tariffs – such as 50% rates covering steel – already in force.
He warned the rates could be adjusted “upward or downward, depending on our relationship with your country”.
Country-specific tariffs had been due to take effect from Wednesday this week but Mr Trump had earlier revealed that nations would start to get letters instead, setting out the US position.
The letters sent to Japan and South Korea cited persistent trade imbalances for the rates and included the sentence: “We invite you to participate in the extraordinary Economy of the United States, the Number One Market in the World, by far.”
He ended both letters by saying, “Thank you for your attention to this matter!”
The European Union – the biggest single US trading partner – is among those set to get a letter in the coming days.
Mr Trump has also threatened an additional 10% tariff on any country aligning itself with the “anti-American policies” of BRICS nations – those are Brazil, Russia, India, China and South Africa and whose members also include Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.
The UK, bar a massive shock U-turn, should be exempt.
Please use Chrome browser for a more accessible video player
2:49
What does the UK-US trade deal involve?
The country was the first to be granted a trade deal, of sorts, in May and the Trump administration has claimed many others had been offering concessions since the clock ticked down to 9 July.
The UK is not expected to face any changes to its current 10% rate due to the trade truce, which came into effect last week.
While UK-made cars aerospace products face no duties under a new quota arrangement, it still remains to be seen whether 25% tariffs on UK-produced steel and aluminium will be cancelled.
Please use Chrome browser for a more accessible video player
5:08
Can the UK avoid steel tariffs?
They could, conceivably, even be raised to 50%, as is currently the case for America’s other trading partners, because no agreement on eliminating the rate was reached when the government struck its deal in May.
It all amounts to more uncertainty for the UK steel sector.
A No 10 spokesman said on Monday: “Our work with the US continues to get this deal implemented as soon as possible.
“That will remove the 25% tariff on UK steel and aluminium, making us the only country in the world to have tariffs removed on these products.
“The US agreed to remove tariffs on these products as part of our agreement on 8 May. It reiterated that again at the G7 last month. The discussions continue, and will continue to do so.”
China and Vietnam have also secured some US concessions.
The dollar strengthened but US stock markets lost ground in the wake of the letters to Japan and South Korea being made public, with the broad-based S&P 500 down by 1%.
Stock markets in both Japan and South Korea were closed for the day but US-traded shares of SK Telecom and LG Display were down 7.5% and 5.8% respectively.
Shares in Elon Musk’s Tesla have reversed sharply over renewed concerns about his focus on the company’s recovery as he plots against Donald Trump.
Shares in the electric car firm plunged by more than 7% at the start of trading on Wall Street – taking about $71bn (£52bn) off its market value.
The stock has often come under pressure since Musk started his association with the president, latterly helping bring down federal government costs through a new department known as DOGE (Department of Government Efficiency).
But it is now suffering as their political relationship has soured.
Musk has publicly opposed the so-called “big, beautiful bill” – Mr Trump’s flagship tax cut and spending plans that received Congressional approval last week – since he left his DOGE role.
Musk wrote in a post on his X platform on 30 June: “It is obvious with the insane spending of this bill, which increases the debt ceiling by a record FIVE TRILLION DOLLARS that we live in a one-party country – the PORKY PIG PARTY!!”
More on Donald Trump
Related Topics:
Once the bill was passed, he created a poll on X, asking people if they would want him to launch the America Party.
Please use Chrome browser for a more accessible video player
1:32
Musk v Trump: ‘The Big, Beautiful Breakup’
He wrote on 4 July: “Independence Day is the perfect time to ask if you want independence from the two-party (some would say uniparty) system!”
The vote ended with 65.4% in favour of creating the party.
The formation of the America Party was announced the following day.
“By a factor of 2 to 1, you want a new political party and you shall have it! When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy.”
“Today, the America Party is formed to give you back your freedom,” Musk posted.
Trump responded on his Truth Social account: “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks.
“He even wants to start a Third Political Party, despite the fact that they have never succeeded in the United States – The System seems not designed for them.”
Please use Chrome browser for a more accessible video player
1:25
Trump threatens to ‘put DOGE’ on Musk
Trump has previously threatened to go after Tesla‘s government subsidies and contracts through the DOGE department to save “big” as their relationship deteriorated.
Such threats have also pressured the share price at Tesla.
It has suffered throughout Trump 2.0 and, in fact, has trended lower since last December – shortly after Mr Trump’s election win was confirmed.
The possibility of tariff hits to the business, followed by actual tariff disruption, along with a consumer and investor backlash against Musk’s previous DOGE role have contributed to a 35% decline on the December peak.
The very absence of Tesla’s CEO dragged on the shares.
Tesla sales suffered globally as the trade war ramped up due to the imposition of tariffs by a government he supported, until the public row between him and the president began in early June.
Musk had only just renewed his 100% focus on Tesla and his other business interests by that time.
Tesla sales were down during the presidential election campaign last year and continued to decline, on a quarterly basis, during the first half of 2025.
Neil Wilson, UK investor strategist at Saxo Markets, said of the company’s share price woes: “Investors are worried about two things – one is more Trump ire affecting subsidies and the other more importantly is a distracted Musk.
“Investors had cheered Musk stepping back from frontline politics but are now worried he’s going to sucked back in and take his eye off Tesla.”