Managing Discussion in the Context of a Family-Owned Enterprise
The Murdoch family business negotiation, a decade-long saga, has finally reached its conclusion, securing the future of the media empire for at least the next three decades. The complex family dynamics, differing visions for the company's future, and disputes over control and management roles have been the central themes throughout this drawn-out process.
Rupert Murdoch, the patriarch of the family, established an irrevocable trust in 1999 that gave his four children equal control of his media empire upon his death. However, the notoriously fraught nature of family business negotiations made the takeover negotiations challenging. In 2019, Murdoch put Lachlan in charge of Fox and News Corp, and James, his second son, left the family business.
The negotiations took a turn in late 2023 when Murdoch attempted to rewrite the irrevocable trust to give Lachlan virtually full control over the family's media holdings. This move was met with resistance from his three older siblings. Lachlan, seeking a resolution, reached out to his siblings, but they slow-walked the negotiations to try to win concessions.
In March 2025, representatives for the two factions met at the Harvard Club in New York City to discuss the outlines of a deal. The family trust will be dissolved, and a new trust will grant Lachlan control of the Murdoch empire at least until its 2050 end date. Lachlan agreed to pay his three oldest siblings $1.1 billion each for their shares in the Murdoch empire.
The resolution of the Murdoch family business negotiation allowed the siblings to make clean breaks for princely sums. It also secured Rupert and Lachlan the ability to keep their empire leaning right for decades to come, given Murdoch's media assets include News Corp and Fox News, among other conservative media holdings.
Regular meetings to discuss the state of the family business can help address unresolved conflicts and painful memories in family business negotiations. Sharing concerns can prevent them from festering and causing further problems. Including family members in decision-making processes can help prevent suspicions of subterfuge and defensive measures.
However, surprise power grabs can inspire anger, hurt feelings, defensive measures, and retaliation. This was evident in the Murdoch family business negotiation, where tensions grew between Murdoch's two sons, Lachlan and James, in recent years, with James souring on Fox's support of President Donald Trump.
The negotiation's final hurdle came when Wendi Deng, Murdoch's third ex-wife and the mother of his two younger children, was involved. Murdoch negotiated separately with her to secure their participation in a new trust. A Nevada commissioner ruled against Murdoch, calling the secret maneuvers 'a carefully crafted charade' and 'an abuse of discretion.'
Despite these challenges, the Murdoch family business negotiation has come to a close, marking a significant milestone in the history of one of the world's most influential media empires. The agreement represents about 80% of the value of their stock at the time of the deal, providing a substantial payout for all parties involved.
