For the secretive Murdochs, the succession drama has been a nightmare. It’s far from over

Core Insights - The Murdoch family is experiencing significant internal conflict, particularly following a $5 billion settlement that has led to a permanent estrangement between Rupert Murdoch and three of his billionaire children [1][4][9] - The family’s reputation has suffered due to leaks and revelations, particularly from competitors like the New York Times, which have exposed their internal struggles [2] - The recent sale of $1.37 billion worth of voting stock in Fox Corp and News Corp marks a significant financial maneuver amidst the family’s ongoing disputes [3][7] Financial Transactions - The settlement allowed the dissenting children to receive $3.3 billion for their 50% stake in the Murdoch Family Trust, with each child facing substantial tax liabilities on their respective $1.7 billion payouts [9] - Team Lachlan, aligned with Rupert, is required to raise $1.95 billion in cash, having already secured $1.37 billion from the largest family share sale in history [11] - A margin loan of $1 billion has been taken against their reduced controlling stake in both companies, with a significant portion of their voting shares pledged to a financier [12] Corporate Strategy - The Lachlan-Rupert faction is considering a merger of News Corp and Fox Corp, a plan previously hindered by James Murdoch, which may now be revisited [16] - The potential demerger of News Corp's 61% stake in REA Group could provide Team Lachlan with a $3.36 billion stake, allowing them to manage their debt without losing control [15] Market Impact - Following the sale of shares, Fox Corp's stock price fell by 6.67%, indicating immediate market reaction to the family’s financial decisions [7] - The combined market value of Fox Corp and News Corp is approximately $67 billion, with the family’s control becoming increasingly complex due to the recent transactions [8] Future Considerations - The settlement includes a long-term standstill agreement preventing the departing beneficiaries from acquiring shares in Fox and News Corp, raising questions about future competition and potential conflicts [20] - The ongoing drama within the Murdoch family, particularly regarding their relationship with Donald Trump and the implications of his lawsuits against News Corp, suggests that the situation may continue to evolve [20]