Rupert Murdoch loses legal battle to wrestle control of his media empire

An attempt by Rupert Murdoch to change who controls the future of his media empire has been blocked.

A court document accuses the 93-year-old of acting in “bad faith” by attempting to amend his family trust to benefit his eldest son, Lachlan.

Currently, the trust passes control of the company equally among Mr Murdoch’s four oldest children – Lachlan, James, Elisabeth and Prudence – after his death.

But Nevada commissioner Edmund Gorman rejected a bid to change the terms of the trust following a lengthy hearing.

Lachlan is head of Fox News parent Fox Corp and News Corp, which owns UK titles including The Sun and The Times.

Mr Murdoch’s proposed amendment would have blocked any interference by three of Lachlan’s siblings, who are more politically moderate.

Mr Gorman said the plan to change the trust was a “carefully crafted charade”, according to The New York Times which first revealed details of the ruling.

The newspaper also described that, in the commissioner’s opinion, it was an attempt to “permanently cement Lachlan Murdoch’s executive roles” inside the empire “regardless of the impacts such control would have over the companies or the beneficiaries” of the family trust.

Potentially, three of the heirs could out-vote a fourth, setting up a battle over the future of the companies.

“The effort was an attempt to stack the deck in Lachlan Murdoch’s favor after Rupert Murdoch’s passing so that his succession would be immutable”, the commissioner ruled.

“The play might have worked; but an evidentiary hearing, like a showdown in a game of poker, is where gamesmanship collides with the facts and at its conclusion, all the bluffs are called and the cards lie face up.”

A spokesman for Mr Murdoch could not immediately be reached for comment.

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But his lawyer, Adam Streisand, said they were disappointed with the ruling and intended to appeal, The New York Times reported.

A spokesperson for Prudence, Elisabeth and James Murdoch said in an emailed statement to The Associated Press that they welcome the ruling and hope that their family can “move beyond this litigation to focus on strengthening and rebuilding relationships among all family members.”

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.