Murdoch Family Trust Settlement Spurs 14.2 Million Class B Shares Sale

Background on the Murdoch Family Trust Resolution

On September 8, 2025, News Corporation announced a mutual resolution to the legal proceedings concerning the Murdoch Family Trust (MFT) in Nevada. This development marks the end of a protracted dispute that has had implications for the governance and ownership structure of the media conglomerate. The resolution involves restructuring the trust arrangements that hold significant shares in News Corp and its affiliate Fox Corporation.

New Trusts and Beneficiary Changes

As part of the settlement, new trusts will be created for the benefit of Lachlan Murdoch, Grace Murdoch, and Chloe Murdoch; collectively referred to as the Remaining Beneficiary Trusts. Meanwhile, Prudence MacLeod, Elisabeth Murdoch, and James Murdoch, identified as the Departing Beneficiaries, will cease to be beneficiaries of any trusts holding shares in News Corp or Fox Corporation. This shift effectively narrows the circle of family members with direct trust-held interests in the companies.

Secondary Offering of Class B Shares

The Departing Beneficiaries, through their respective trusts and descendants, plan to sell approximately 14.2 million shares of News Corp’s Class B common stock in an underwritten public offering. One should note that News Corp itself is not selling any shares and will not receive proceeds from this offering. The sale is subject to market conditions, and the timing remains uncertain. Morgan Stanley is acting as the sole underwriter for the transaction.

Ownership and Voting Control Post-Transaction

Following these transactions, LGC Holdco, LLC; a company owned by the Remaining Beneficiary Trusts; will hold approximately 33.1% of News Corp’s Class B common stock and 36.2% of Fox Corporation’s Class B common stock. Voting control over these shares will rest solely with Lachlan Murdoch, who will serve as managing director. Rupert Murdoch will continue his role as Chairman Emeritus, providing continuity in leadership. The Departing Beneficiaries will also sell their personal holdings over the next six months and will be subject to a long-term standstill agreement preventing them from acquiring shares or influencing company affairs.

Implications for News Corp and Investors

This resolution and share offering clarify the ownership structure and consolidate control within a narrower group of Murdoch family members. The standstill agreement and trust restructuring reduce potential governance conflicts and may provide greater strategic stability. However, the market will be watching closely how the secondary offering is received and priced, as well as any shifts in shareholder dynamics that follow. The company’s board has expressed confidence in Lachlan Murdoch’s leadership to guide News Corp’s future direction.