Murdoch Considering Fox-News Corp Re-Merger, Court Documents Reveal

Rupert and Lachlan Murdoch are considering a recombination of their media holdings, Fox Corp. and News Corp., according to recently unsealed court documents. The filings, related to a family succession dispute, reveal that a potential re-merger remains a live possibility after a similar attempt failed in 2022.

Renewed Merger Considerations

Details of a potential merger resurfaced in court documents and video testimony released in late July, following a petition by several news organizations, including Reuters. The possibility of a renewed attempt was highlighted during a June hearing when an attorney for Lachlan Murdoch argued that discussions about a merger should remain sealed because it is "something that still could happen in the future."

Both Fox Corp. and News Corp. declined to comment on the matter. For investors, a new proposal would likely face scrutiny similar to the 2022 plan, which was withdrawn after shareholders expressed concerns about the strategic rationale of reuniting the distinct businesses.

Background on the Split and Previous Attempt

The Murdochs first explored a re-merger in 2022, less than a decade after splitting the original News Corporation into two separate public companies in 2013. The initial split was designed to isolate the faster-growing television and entertainment assets from the newspaper and publishing operations, which were then facing challenges including a phone-hacking scandal in the U.K.

A merger would bring together a diverse set of assets:

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• Fox Corp.: Includes the Fox News Channel, the Fox broadcast network, and local television stations.
• News Corp.: Holds major publishing assets such as The Wall Street Journal, the New York Post, and The Sun newspaper in the U.K.

Court filings from the 2022 attempt showed Rupert Murdoch's determination to proceed, with one text message to his daughter Elisabeth threatening to "ram it through ... if necessary."

Insights from Family Trust Dispute

The revelations emerged from a contentious family dispute over the Murdoch family trust that began in December 2023. The legal battle centered on Rupert Murdoch's move to alter the trust to give his eldest son, Lachlan, effective control of the companies.

The matter was settled last year, solidifying Lachlan's position as heir. His siblings—Prudence MacLeod, Elisabeth, and James—were reportedly paid $1.1 billion each in a deal that dissolved their stakes in the family trust. The court documents underscored the elder Murdoch's motivation, quoting him as saying it would be a "disaster" for the U.S. and Australia if the assets "fell into the wrong hands."