Fox Stock Slips on Murdoch Succession Pact, Share Offering
Lachlan Murdoch's control is solidified in a $3.3 billion family settlement, prompting the sale of nearly 17 million Class B shares.
Shares of Fox Corporation (NASDAQ: FOXA) slipped in after-hours trading following the resolution of the high-stakes Murdoch family succession drama, which was accompanied by a large secondary stock offering. The stock dipped 0.8% after the company announced the pricing of the offering and the conclusion of legal disputes that secure Lachlan Murdoch's control over the influential media empire.
The complex family arrangement was settled for a reported , ending a period of uncertainty over the company's future leadership. As part of the resolution, trusts for siblings Prudence MacLeod, Elisabeth Murdoch, and James Murdoch are selling 16,835,016 shares of Fox's Class B common stock.
Fox Corporation announced the at $54.25 per share. The company itself is not selling any shares and will not receive any of the proceeds; the funds will go entirely to the selling stockholders, who will relinquish their beneficiary roles in the family trusts holding FOX and News Corp. shares.
The settlement marks the end of a legal battle that began when patriarch Rupert Murdoch moved to amend his family trust to cement Lachlan's leadership and ensure the conservative lean of his media assets. The terminates all litigation. Under the new structure, Lachlan Murdoch will have sole voting control of the family's shares through 2050, providing a clear line of leadership for the foreseeable future, while Rupert Murdoch will serve as Chairman Emeritus. This definitive conclusion to the succession saga, while causing minor short-term stock pressure, establishes a stable governance structure for the media giant.