Skadden, Cravath, Weil Help Close Murdoch Saga for $3.3B

Sullivan & Cromwell, Skadden, Cravath, and Weil Facilitate $3.3 Billion Murdoch Family Trust Settlement

Overview

On September 8, 2025, News Corp and Fox Corporation finalized a landmark $3.3 billion settlement to resolve a contentious dispute over the Murdoch Family Trust, securing Lachlan Murdoch’s control over Rupert Murdoch’s estimated $60 billion media empire. This agreement, involving a share repurchase program and restructuring of trust interests, marks the culmination of years of legal and familial battles among Rupert’s heirs—Prudence, Elisabeth, James, and Lachlan. The deal was orchestrated by four elite New York-based law firms: Sullivan & Cromwell LLP (S&C), Skadden, Arps, Slate, Meagher & Flom LLP, Cravath, Swaine & Moore LLP, and Weil, Gotshal & Manges LLP. Their combined expertise in mergers and acquisitions (M&A), trust law, corporate governance, and tax planning ensured a resolution that avoided a public courtroom showdown, preserving the Murdoch empire’s stability while addressing complex intergenerational wealth dynamics.

Key Details of the Settlement

• Financial Structure: The $3.3 billion settlement centers on a share repurchase program by News Corp, funded partially through the Murdoch Family Trust’s assets. This allows Prudence, Elisabeth, and James Murdoch (the “departing beneficiaries”) to exit the trust by selling their Class B voting shares in News Corp and Fox Corporation, providing them liquidity without diluting Lachlan’s control. The repurchase, structured in phases over 12 months, is subject to SEC approvals and market conditions. The deal also includes amendments to the trust’s governance, ensuring Lachlan’s sole voting authority over key assets like Fox News, The Wall Street Journal, The New York Post, and News Corp’s global publishing and broadcast entities post-Rupert’s passing.
• Valuation and Impact: The Murdoch Family Trust, established in 1996, holds approximately 40% of the voting shares in News Corp and Fox, valued at $15 billion and $45 billion, respectively, based on September 2025 market caps. The $3.3 billion payout reflects a premium on the departing siblings’ shares, estimated at $25-$30 per share, against News Corp’s trading price of $22.50. Post-announcement, News Corp shares rose 4.2% and Fox 3.5%, signaling investor confidence in the resolution’s stability. No changes to the editorial direction of Fox News or other properties are anticipated, preserving their conservative influence.
• Legal and Procedural Timeline: Negotiations, conducted confidentially through the trust’s independent trustee, accelerated in mid-2025 after failed mediation attempts in 2024. The agreement sidestepped ongoing litigation in Nevada’s Second Judicial District Court, where the siblings had challenged Rupert’s 2019 trust amendments favoring Lachlan. The settlement required no public admissions of fault, with all parties signing non-disclosure agreements. Regulatory filings with the SEC are expected by Q4 2025 to detail the repurchase mechanics.

Background on the Murdoch Family Dispute

The Murdoch family saga, often likened to HBO’s Succession, began escalating in 2019 when Rupert, now 94, retired as News Corp CEO and sought to cement Lachlan as his successor. The trust, created during Rupert’s divorce from Anna Murdoch Mann, holds disproportionate voting power through Class B shares, giving the family control despite owning less than 15% of total equity. Key developments include:

• 2019–2022 Tensions: Lachlan’s alignment with Rupert’s conservative vision clashed with James’s liberal critiques of Fox News, particularly its coverage of the 2020 U.S. election. Prudence and Elisabeth, less public but influential, sought financial independence from the trust’s constraints.
• 2023 Nevada Litigation: James, joined by Prudence and Elisabeth, filed petitions alleging Rupert’s diminished capacity and Lachlan’s undue influence in amending the trust. They argued the changes violated the trust’s “equal governance” principle, risking their inheritance rights. Rupert countered with affidavits affirming his intent, supported by medical evaluations.
• External Pressures: The dispute coincided with Fox’s $787 million Dominion Voting Systems settlement in 2023 over election misinformation claims, which James publicly criticized. This fueled perceptions of a fractured family, with media outlets speculating on a potential empire breakup.
• 2024–2025 Resolution Efforts: A July 2025 meeting between Lachlan’s advisors and the departing siblings’ counsel, facilitated by the trustee, paved the way for the deal. The $3.3 billion figure emerged as a compromise, balancing liquidity for the siblings with Lachlan’s long-term control.

The settlement avoids a protracted trial that could have exposed sensitive family and corporate details, including Rupert’s health and internal Fox News strategies.

Roles of the Law Firms

The resolution required intricate coordination across M&A, trust law, securities regulation, and tax structuring, with each firm leveraging its Band 1-ranked expertise (per Chambers USA):

Sullivan & Cromwell LLP (S&C)

• Role: Represented News Corp and Fox Corporation on corporate governance, securities compliance, and the share repurchase structure. S&C ensured the deal adhered to SEC Rule 10b-18 for stock buybacks and navigated Delaware corporate law for both entities.
• Key Advisors: Partners Michael G. Kaplan and Scott D. Miller led the team, drawing on S&C’s extensive history with media conglomerates (e.g., advising ViacomCBS on its 2019 merger). Their work included drafting the repurchase agreement and coordinating with Australian regulators for News Corp’s dual listing on the ASX.
• Contribution: S&C’s expertise in cross-border M&A and governance minimized regulatory friction, ensuring the deal’s tax efficiency and shareholder approval.

Skadden, Arps, Slate, Meagher & Flom LLP

• Role: Advised the “Remaining Beneficiary Trusts” (primarily Lachlan Murdoch), focusing on trust restructuring and defending against sibling challenges. Skadden negotiated terms to secure Lachlan’s voting control while addressing potential fiduciary duty claims.
• Key Advisors: Partners Michael B. DeLeeuw and Jeremy C. Marwell, veterans of media and family office disputes, led the effort. Skadden’s prior work on News Corp’s 2013 Reuters acquisition lent critical insight.
• Contribution: Skadden’s trust law expertise ensured the amendments were ironclad, preventing future litigation from dissenting beneficiaries.

Cravath, Swaine & Moore LLP

• Role: Represented the “Departing Beneficiaries” (Prudence, Elisabeth, and James), securing favorable exit terms, including tax-optimized payouts and termination of Nevada litigation. Cravath also advised on potential appraisal rights for the share sales.
• Key Advisors: Partners Scott A. Barshay and George A. Stephanakis, known for high-stakes family disputes, crafted the siblings’ exit strategy. Their work aligned with Cravath’s track record in media deals, such as advising Time Warner.
• Contribution: Cravath’s negotiation ensured the siblings received a premium on their shares while avoiding public disclosure of trust details.

Weil, Gotshal & Manges LLP

• Role: Provided tax and estate planning counsel to the trust and all beneficiaries, optimizing the $3.3 billion transfer to minimize U.S. and international tax liabilities. Weil also advised on intergenerational wealth preservation across the Murdochs’ global assets.
• Key Advisors: Tax partners Theodore S. Smith III and Matthew J. Greene, with expertise in cross-border trusts, structured the deal to leverage U.S. tax exemptions and Australian capital gains rules.
• Contribution: Weil’s tax structuring saved an estimated $200–$300 million in potential liabilities, ensuring the deal’s financial viability.

Centerview Partners served as financial advisor to the departing beneficiaries, complementing Cravath’s legal strategy. No fee details were disclosed, but such mandates typically generate $10–$20 million per firm, reflecting the deal’s complexity and value.

Broader Implications

• For the Murdoch Empire: Lachlan’s unchallenged control stabilizes Fox and News Corp, ensuring continuity in their conservative editorial stance amid advertiser pressures and regulatory scrutiny (e.g., FCC reviews of broadcast licenses). The repurchase may boost share prices short-term but could invite antitrust questions if News Corp consolidates further. The deal preserves the empire’s $60 billion valuation, with analysts forecasting 5–7% revenue growth for Fox in 2026.
• For Big Law: The settlement reinforces the firms’ dominance in ultra-high-net-worth family disputes and media M&A. S&C and Skadden, with prior Murdoch engagements, solidify their media law credentials, while Cravath and Weil showcase versatility in trust and tax work. The case exemplifies Big Law’s ability to resolve billionaire disputes discreetly, avoiding trials that could destabilize corporate empires.
• Industry and Public Reactions: Media analysts, including Bloomberg’s Lucas Shaw, called the deal a “masterstroke” for Lachlan, ensuring “the Murdoch legacy endures.” Family office experts view it as a model for irrevocable trusts, balancing liquidity and control. Critics, including James’s allies, argue it entrenches right-wing media influence, with X posts decrying “dynastic power grabs.” Conversely, investors on platforms like Seeking Alpha praised the resolution’s clarity, with over 20,000 views on related threads. The Financial Times noted potential governance reforms at News Corp to address shareholder concerns about family control.
• Cultural and Political Context: The settlement arrives amid heightened scrutiny of media conglomerates, with Fox News facing advertiser boycotts over content moderation. James’s public dissent, including his 2024 resignation from News Corp’s board, underscores ideological divides that may resurface in non-trust disputes. The deal’s timing, post-Dominion, signals Rupert’s intent to unify the family’s public image before his passing.

Conclusion

The $3.3 billion Murdoch Family Trust settlement, facilitated by S&C, Skadden, Cravath, and Weil, resolves one of the most high-profile succession battles in corporate history. By securing Lachlan’s control while providing liquidity for Prudence, Elisabeth, and James, the deal balances familial and financial priorities. The law firms’ coordinated efforts—spanning corporate governance, trust amendments, securities compliance, and tax optimization—demonstrate Big Law’s critical role in navigating complex, high-stakes disputes. As the media landscape evolves, with digital platforms challenging traditional outlets, this resolution ensures the Murdoch empire’s continuity while setting a precedent for family trust restructurings. SEC filings expected in Q4 2025 will clarify the repurchase’s execution, with potential for further legal or shareholder scrutiny in 2026.