This article originally appeared in LinkedIn Pulse, authored by Louise Vella.
Introduction
Succession planning is a cornerstone of family business sustainability. According to global surveys, less than one-third of family businesses successfully transition to the next generation. Common obstacles include rivalry among heirs, unclear succession structures, and the lack of conflict resolution mechanisms. The Murdoch case illustrates how even carefully designed legal frameworks, such as irrevocable trusts, can be destabilised by ideological divisions and family feuds.
This paper adopts a case study approach, analysing the Murdoch succession conflict through the lens of family governance, conflict theory, and succession planning best practice.
This case study relies on secondary sources, including court rulings, media reports, corporate statements, and academic literature. The information has been triangulated from multiple news outlets such asThe Washington Post,News Corp,Al Jazeera,Forbes, andAP News, alongside scholarly references from Emerald Publishing and legal analyses. The purpose is not only descriptive but also analytical, drawing lessons applicable to family businesses more broadly.
Background
The Murdoch Family Trust (MFT), established in 1999, held the family’s controlling interests inNews CorpandFox Corp. Rupert Murdoch retained four votes, while his eldest children—Prudence, Elisabeth, Lachlan, and James—each held one vote. Grace and Chloe, his youngest daughters, were non-voting financial beneficiaries.
Emerging Conflict
Ideological differences between the siblings created latent tensions. Lachlan Murdoch’s alignment with Rupert’s conservative editorial stance positioned him as the preferred successor. In contrast, James Murdoch’s liberal views clashed with Fox News’ direction, while Elisabeth and Prudence expressed scepticism about concentrating control in Lachlan’s hands.
Legal Dispute
In 2023, Rupert and Lachlan initiated “Project Family Harmony,” seeking to amend the irrevocable trust to consolidate control under Lachlan. This attempt led to legal action in Nevada. In December 2024, the probate commissioner ruled against the change, describing the manoeuvre as “bad faith.”
Resolution
A settlement in September 2025 resolved the conflict:
Lachlan Murdoch secured sole voting control of the trust.
Prudence, Elisabeth, and James surrendered their rights in exchange for approximately USD 3.3 billion in compensation, or USD 1.1 billion each.
Grace and Chloe remained non-voting beneficiaries.
The settlement preserved strategic continuity for the business but fractured family relations and highlighted the high cost of unresolved conflict.
Discussion
The Murdoch case exemplifies the challenges inherent in family business succession:
Legal Structures vs. Family Dynamics
The MFT offered a strong governance framework, but it couldn’t prevent clashes among heirs. No contract can replace trust.
Transparency and Inclusivity
The secrecy of Project Family Harmony fostered feelings of betrayal among non-favoured heirs. Transparent communication is essential to maintain legitimacy in succession processes.
Ideological Dimensions of Succession
Succession disputes are often about more than financial control; they reflect competing visions for the business. In this case, conservative versus liberal editorial orientations intensified the conflict.
Conflict Resolution Mechanisms
Litigation proved costly and public. Family councils, mediation processes, or independent trustees might have provided less adversarial alternatives.
Financial Settlements as Partial Solutions
The USD 3.3 billion payout resolved ownership disputes but did not heal fractured relationships. Compensation may buy peace, but it rarely restores harmony.
Dynamic Nature of Succession
What appeared equitable in 1999 was no longer viable by 2025. Succession planning must be revisited regularly to reflect changing family dynamics and external conditions.
Implications for Family Businesses
The Murdoch case aligns with wider research findings:
A 2024 study of Pakistani family firms (Emerald, 2024) identified sibling rivalry and unclear leadership succession as key obstacles.
Research on Indonesian family firms highlights the correlation between unresolved succession disputes and declining performance.
For smaller businesses, the consequences may not involve billion-dollar payouts, but they can still be devastating. Loss of cohesion, operational paralysis, and reputational damage are common outcomes.
Conclusion
The Murdoch succession saga demonstrates that succession planning is as much about managing people and values as it is about distributing assets. Family feuds can destabilise even the strongest legal frameworks, forcing costly settlements and leaving lasting scars. Advisors and family business leaders must therefore:
Combine legal planning with robust governance and conflict resolution mechanisms.
Ensure transparency and inclusivity in succession decisions.
Recognise and address ideological differences early.
Ultimately, the Murdoch case shows that the central question in succession planning is not only who inherits, but how succession reflects the family’s shared vision and values.
📌 Sources:
Washington Post. (2025, September 8). Rupert Murdoch strikes settlement to give Lachlan control of empire.
News Corp. (2025, September 8). News Corp announces resolution of Murdoch Family Trust matter.
Al Jazeera. (2025, September 9). Rupert Murdoch seals deal passing control of media empire to eldest son.
AP News. (2024, December 9). Court rejects Murdoch bid to alter trust.
Forbes. (2024, December 9). Murdoch’s plan to protect conservative slant rejected by court.
Emerald Publishing. (2024). Exploring business succession dynamics in family-owned businesses: Lessons from Pakistani case studies.
Russell Kennedy Lawyers. (2023). Battle over an empire: Succession planning at its core.
How I Can Help: From Family Dynamics to Boardroom Decisions
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