Award-winning HBO series "Succession," which centered on a media company's patriarch struggle to find a successor for his company was a work of fiction that was well loved by viewers.
The real-life story that inspired the hit show is set to play out in court beginning this week.
What Happened: A battle for control of Fox News and other assets of Fox Corporation FOX FOXA will take center stage in a Nevada trial this week that could impact one of the largest publicly traded media companies.
Media mogul Rupert Murdoch, who helped build Fox to what it is today, is seeking to change the succession plan for his company.
The family trust currently will see Murdoch's children share control of the company when the 93-year-old media mogul passes away, as reported by NPR. Murdoch is looking to revise the trust structure to ensure his eldest son, Lachlan Murdoch, who currently holds the roles of executive chairman and CEO of Fox Corporation and chairman of News Corporation NWS, assumes full control of the company.
Murdoch's other children oppose the trust amendment.
The court battle pitting Murdoch against his children may also spark a dispute over the future direction of Fox News, particularly whether it should remain partisan, as it currently leans toward right-wing viewpoints. Son James Murdoch has been critical of Fox News' pro-Donald Trump stance in recent years.
While Lachlan and his father have battled over the years, much like the characters on "Succession," Murdoch now believes that the eldest son could best position Fox and News Corp for the future.
Murdoch set up a family trust that would hand equal share and equal control to his holdings after his death as part of an agreement when he left his second wife Anna Torv Murdoch Mann. The trust and a $110 million payout to Murdoch Mann helped the media mogul avoid a fight over his media holdings.
Recent tensions between Rupert Murdoch’s children and their father have led to several of them skipping his wedding to his fifth wife, Elena Zhukova, earlier this year.
The Murdoch succession court battle is scheduled to begin on Monday and will remain private. A motion by NPR and other media outlets to make the trial public was denied by the probate official. Murdoch and his four oldest children are expected to appear in court.
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Why It's Important: A change of Fox News could impact the large media company and take years to recover in viewership and advertising revenue as it charts a new path.
"If they were to change the direction and move into the direction of a CNN format, or go down the middle, it will lose its identity, lose viewers and lose revenues," former Fox News president Joe Peyronnin said, as shared by NPR.
James Murdoch has pushed for Fox News to be more similar to Sky News in Europe, a media company he previously ran when it was owned by Fox. James has been critical of the Murdoch family businesses coverage of topics like global warming and the 2020 election.
In 2023, Fox paid a record $787.5 million settlement in a defamation lawsuit from Dominion Voting Systems over allegations that Fox News falsely claimed the voting machines were fraudulent in the 2020 election.
With Fox and News Corp both publicly traded companies, the family battle will draw interest from investors and analysts, as the succession planning could determine what the future direction of the companies looks like.
FOX, NWS Price Action: Fox shares are up 0.4% to $36.91 on Monday, versus a 52-week trading range of $25.82 to $38.52. Fox stock is up 30% year-to-date in 2024.
News Corp stock is up 0.2% to $27.43 on Monday versus a 52-week trading range of $20.01 to $29.59. News Corp stock is up 7% year-to-date in 2024.
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