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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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Ex-BT chief Patterson sounded out about £300m Waves Audio float

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Ex-BT chief Patterson sounded out about £300m Waves Audio float

A former BT Group chief is being lined up to steer an audio technology business used by many of the world’s leading musicians through a £300m London flotation.

Sky News has learnt that Gavin Patterson, who now sits on various boards including Ocado Group, is in talks to chair Waves Audio ahead of a listing which could come as soon as next month.

City sources said an agreement between the company and Mr Patterson had yet to be finalised.

Sky News revealed several weeks ago that Waves Audio, which is headquartered in Israel, had hired bankers from Panmure Liberum to oversee an initial public offering (IPO).

The company, which is majority-owned by founders Meir Sha’ashua and Gilad Keren, is expected to raise millions of pounds from the sale of new shares, although the details have yet to be finalised.

Waves Audio makes professional digital audio signal processing technology and audio effects used in recordings, mixing, mastering, post-production, broadcasting and live sound.

It employs more than 200 people, and has a major international presence, including in Europe and the US.

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A successful float on London’s main market would be a relative rarity given the depressed level of IPO activity in the last couple of years.

Data compiled by EY, the professional services firm, showed that there were just five new listings on the London market in the first quarter of the year.

Pessimism about the outlook for flotations has been compounded by a steady trickle of companies cancelling their London listings or shifting them overseas – with drugmaker Indivior the latest to abandon the City on Monday.

The UK market’s biggest hope – that Shein, the Chinese-founded online fashion retailer, would defy the impact of US President Donald Trump’s tariffs and list in London – appears to have been dashed, with reports last week suggesting that it would float in Hong Kong instead.

A spokesman for Waves Audio declined to comment.

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Newly re-privatised NatWest names Chamberlain as retail bank chief

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Newly re-privatised NatWest names Chamberlain as retail bank chief

NatWest Group has picked a new head of its high street branch network in the lender’s first significant appointment since ending its 17-year tenure in partial taxpayer ownership.

Sky News has learnt that Solange Chamberlain has been chosen as NatWest’s new retail bank chief executive, nearly six months after predecessor David Lindberg’s departure was announced.

Ms Chamberlain, who has worked for NatWest since 2019, will take up her new role on 1 July, subject to regulatory approval.

A former investment banker, she will report to Paul Thwaite, the bank’s group chief executive.

Her previous roles at NatWest include chief operating officer of its commercial bank and more recently as group director of strategic development.

NatWest’s retail bank has more than 18 million customers across Britain, making it one of the industry’s four biggest retail banks alongside Barclays, HSBC and Lloyds Banking Group.

The recent acquisition of Sainsbury’s Bank added 1 million accounts to NatWest’s retail customer base.

Responding to an enquiry from Sky News, NatWest confirmed the appointment on Monday afternoon.

Mr Thwaite said in a statement that Ms Chamberlain’s “knowledge of our customers, sharp strategic thinking, and track record of transformation delivery will help us to grow our retail business and succeed with customers”.

On Friday, the Treasury sold the last of its shareholding in NatWest, having bailed out the then Royal Bank of Scotland with £45.5bn of taxpayers’ money during the 2008 financial crisis.

On Monday, shares in the bank were trading at around 524.6p, giving it a market value of more than £42bn.

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SME lender Tide eyes $1bn valuation in Apis funding talks

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SME lender Tide eyes bn valuation in Apis funding talks

Tide, the business banking services platform, is in advanced talks to raise new funding in a deal expected to make it Britain’s latest technology unicorn.

Sky News has learnt that Tide has been negotiating the terms of an investment from Apis Partners, a prolific investor in the fintech sector, for some time.

City sources cautioned that a deal between the two was not yet certain to take place, and that other investors were also in discussions.

Apis Partners has backed early-stage companies such as Moneybox, the UK-based digital wealth manager, and Thunes, a digital payments infrastructure provider.

Significantly, the firm has made a string of investments in India, which is overtaking the UK as Tide’s single-biggest geography.

Tide now has roughly 650,000 SME customers in both Britain and India, with the latter market expanding at a faster rate.

The precise terms of a deal between Apis and Tide were unclear on Monday.

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Morgan Stanley, the Wall Street bank, has been advising Tide on the fundraising, which is expected to comprise a combination of primary and secondary shares.

Tide was founded in 2015 by George Bevis and Errol Damelin, before launching two years later.

It describes itself as the leading business financial platform in the UK, offering business accounts and related banking services.

The company also provides its SME ‘members’ in the UK a set of connected administrative solutions from invoicing to accounting.

It now boasts a roughly 11% SME banking market share in Britain.

Tide, which employs about 2,000 people, also launched in Germany last May.

The company’s investors include Apax Partners, Augmentum Fintech and LocalGlobe.

Chaired by the City grandee Sir Donald Brydon, Tide declined to comment on Monday.

Apis Partners also declined to comment.

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