Rupert Murdoch Ends Succession Drama As Lachlan Emerges Sole Heir To Media Throne: All Eyes On News Corp, Fox Stocks

Media mogul Rupert Murdoch, who owns News Corp. (NWSA) and Fox Corp. (FOXA), has reportedly sealed a deal, settling a succession fight within the family and cementing his son, Lachlan Murdoch's, position as his sole heir apparent.

The Murdochs’ media businesses include the New York Post, Wall Street Journal, Fox News, Sky News Australia, and book publisher Harper Collins.

The NPR said, citing people with direct knowledge who claimed anonymity, that Rupert and Lachlan have entered into a series of complex share transactions with the latter’s three eldest siblings, Prudence, Elisabeth and James.

Lachlan currently serves as the chairman of News Corp. and executive chair and CEO of Fox Corp. and executive chair of the Australian broadcasting company, Nova Entertainment. Each of Lachlan’s siblings would receive $1.1 billion as part of the settlement.

News Corp. stock fell 0.50% in Monday’s after-hours, reversing the 1.70% gain in the regular session. On Stocktwits, sentiment toward the stock remained ‘neutral’ (52/100) while the message volume was at ‘normal’ levels. The stock is up over 9% year-to-date (YTD).

Meanwhile, Fox’s Class B shares fell nearly 3% in the after-hours after settling the regular session up 1.50%. The after-hours drop came after the company said it priced the previously announced secondary offering at $54.25 per share, a discount to Monday’s closing price of $56.81.

Fox stock has gained over 25% this year.

Retail sentiment toward the stock deteriorated to ‘bearish’ (33/100) from ‘neutral’ a day ago, but the message volume spiked to ‘extremely high’ levels.

The NPR report stated that the settlement provides for the dissolution of the old Murdoch family trust and creation of a new one, which Lachlan Murdoch will fully control. Robert Murdoch’s daughters from his third marriage with Wendi Deng, namely Grace and Chloe, will be equal beneficiaries but will not have any say.

The Murdoch companies would sell shares worth more than $1.4 billion to fund the settlement, the report added. This will dilute the new family trust’s stake to one-third from roughly 40% in both Fox and News Corp.

The rumored settlement brings to a close the feud among the Murdoch siblings over issues, including the direction of the company. James Murdoch had recently voiced his opinion against his father’s media outlets' right-leaning coverage, including support for President Donald Trump and opposition to climate change.

Elisabeth and Prudence, meanwhile, did not take kindly to Rupert and Lachlan’s move to sue them without warning in a probate court in Reno, Nevada, in an attempt to cut them off from any influence over the company’s future.

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