Over the decades, media mogul Rupert Murdoch’s attempts to control the future of his media empire have had plenty of twists and turns. The final one may have come this September, when the news broke that the 94-year-old’s oldest son, Lachlan, was buying out three of his siblings to cement control over the family business. The story stands as a turbocharged example of the challenges of family business negotiation, in which age-old rivalries, grudges, and scorekeeping can get in the way of rational decision making.
Project Disharmony?
In 1999, as part of his divorce settlement with his second wife, Anna Mann, Murdoch agreed to establish an irrevocable trust that would give his (at the time) four children—Prudence, Elisabeth, Lachlan, and James—equal control of and equity in his empire upon his death. The Australian-American Murdoch’s multibillion-dollar assets include a broad portfolio of conservative media holdings, including News Corp and Fox News.
Murdoch began to have second thoughts about the agreement decades later, as tensions grew between his two sons. Lachlan and James jointly operated Fox and News Corp for several years, but James soured on Fox’s support of President Donald Trump during his first term. Murdoch put Lachlan in charge of Fox and News Corp in 2019, and James left the family business. Rumors swirled that after Murdoch died, James hoped to “wrest control from Lachlan and tame the companies’ wilder right-wing instincts,” with backing from Prudence and Elisabeth, according to the New York Times.
Apparently worried about his family business turning leftward, in late 2023, Murdoch moved to solidify Lachlan’s leadership by attempting to rewrite the irrevocable trust. In a surprise bid optimistically labeled “Project Family Harmony,” Murdoch sought to give Lachlan virtually full control over the family’s media holdings without altering ownership. A provision in the trust allowed for good-faith changes made to the benefit of all its members, the Times reports.
Blindsided and infuriated, James, Elisabeth, and Prudence joined forces to try to block the move in court. A Nevada commissioner ruled against Murdoch, calling the secret maneuvers “a carefully crafted charade” and “an abuse of discretion.”
Rewriting the Story
A peaceful end to the feud had long been clear: Lachlan could buy Prudence, Elisabeth, and James out of the family business. In fact, he had attempted to do so in the past, but they had rejected what they viewed as lowball offers. As Murdoch moved to appeal the Nevada commissioner’s decision, Lachlan reached out to his siblings, more motivated than ever to do a deal.
Well aware that “the older Rupert got, the more desperate he and Lachlan became to make a deal,” as the Times writes, Prudence, Elisabeth, and James slow-walked the negotiations to try to win concessions. But when an appeals court judge signaled an openness to Rupert Murdoch’s arguments, they, too, seemed ready for resolution.
In March 2025, representatives for the two factions met at the Harvard Club in New York City to discuss the outlines of a deal. For the first time, Lachlan seemed open to paying close to full value for his siblings’ shares. Then they upped the ante, asking for the new trust to pay for their tax burden from the sale of their shares, the Times reports. Lachlan refused; the siblings eventually backed down. Meanwhile, Murdoch negotiated separately with Wendi Deng, his third ex-wife and the mother of his two younger children, Grace and Chloe, to secure their participation in a new trust.
Ultimately, Lachlan agreed to pay his three oldest siblings $1.1 billion each for their shares in the empire, about 80% of the value of their stock at the time of the 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.
Navigating Family Business Negotiation
“In a sense, both sides are getting what they wanted and can claim victory,” the Times reported as the Murdoch family business negotiation appeared to come to an end. Prudence, Elisabeth, and James were able to make clean breaks for princely sums, and Rupert and Lachlan secured the ability to keep their empire leaning right for decades to come.
The resolution was relatively straightforward. Why was it so difficult to achieve?
To begin with, family business negotiation can be notoriously fraught. Even the most harmonious family has its share of unresolved conflict and painful memories. So, whenever you mix business and family, you should plan to meet regularly to discuss how things are going. Don’t be afraid to share any concerns that arise, as they’ll only fester if left unaddressed.
In addition, rather than initiating private negotiations, Rupert and Lachlan made a surprise power grab that caught the other main family faction off guard. Whenever you’re considering changes that would affect other family members, include them in your decision making. Suspicions of subterfuge could inspire not just anger and hurt feelings, but defensive measures and retaliation.
What strategies for family business negotiation have you found to be effective?
