Murdoch family settles succession dispute with Lachlan remaining in control of News Corp and Fox

[Rupert Murdoch Delivers Keynote At The National Summit On Education Reform]
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The Murdoch family has resolved its succession dispute and the subsequent Nevada lawsuit over the Murdoch Family Trust (MFT), reaching a “mutual resolution” and terminating all litigation between the parties.

According to the terms of the agreement [https://seekingalpha.com/pr/20224924-news-corp-announces-resolution-of-murdoch-family-trust-matter], Rupert Murdoch's chosen heir, Lachlan, will retain voting control of News Corp (NASDAQ:NWSA [https://seekingalpha.com/symbol/NWSA]) and Fox Corp (NASDAQ:FOX [https://seekingalpha.com/symbol/FOX]) (NASDAQ:FOXA [https://seekingalpha.com/symbol/FOXA]) while the elder Murdoch will remain as Chairman Emeritus. The agreement removes Lachlan’s siblings Prudence MacLeod, Elisabeth Murdoch, and James Murdoch as beneficiaries in any trust. Each will receive a payment of $1.1B, funded by the proceeds from the public sale of approximately $14.2M shares of News Corp (NASDAQ:NWSA [https://seekingalpha.com/symbol/NWSA]) common stock and 16.9M shares of Fox Corp (NASDAQ:FOX [https://seekingalpha.com/symbol/FOX]) (NASDAQ:FOXA [https://seekingalpha.com/symbol/FOXA]) previously held by the MFT.

The resolution keeps News Corp (NASDAQ:NWSA [https://seekingalpha.com/symbol/NWSA]) and Fox (FOX [https://seekingalpha.com/symbol/FOX]) (FOXA [https://seekingalpha.com/symbol/FOXA]) in the hands of Lachlan and Rupert Murdoch and prevents the remaining Murdoch children from launching a takeover following Rupert Murdoch's death.

Following these transactions, LGC Holdco, a company that was established and is owned by the remaining beneficiariaries -- Lachlan Murdoch and Grace and Chloe Murdoch, Rupert Murdoch's daughters with third wife Wendi Deng -- will own all of the remaining shares of News Corp (NASDAQ:NWSA [https://seekingalpha.com/symbol/NWSA]) and Fox (FOX [https://seekingalpha.com/symbol/FOX]) (FOXA [https://seekingalpha.com/symbol/FOXA]) previously held by the MFT.

During the six-month period following these transactions, Prudence MacLeod, Elisabeth Murdoch, and James Murdoch will sell their de minimis personal holdings in News Corp (NWSA [https://seekingalpha.com/symbol/NWSA]) and Fox (FOX [https://seekingalpha.com/symbol/FOX]) (FOXA [https://seekingalpha.com/symbol/FOXA]) so as to have no interest in either company and will be subject to a long-term standstill agreement preventing them and their affiliates from acquiring shares in either company.

Shares of both News Corp (NWSA [https://seekingalpha.com/symbol/NWSA]) and Fox Corp (FOX [https://seekingalpha.com/symbol/FOX]) (FOXA [https://seekingalpha.com/symbol/FOXA]) are both lower in after-hours trading.

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