Lachlan Murdoch's Consolidated Control and the Future of Fox Corporation

In the ever-evolving media landscape, Fox Corporation’s recent governance restructuring under Lachlan Murdoch has sparked significant investor interest. The resolution of the Murdoch Family Trust dispute in September 2025 has cemented Lachlan’s sole voting control until 2050, with Grace and Chloe Murdoch joining him in a newly formed trust holding 36.2% of Fox’s Class B voting stock [1]. This consolidation of power, coupled with strategic initiatives like an expanded NFL media rights agreement and the launch of the streaming service Fox One, positions the company for long-term stability and growth.

Governance Stability and Strategic Continuity

The Murdoch family’s internal battle over control of Fox and News Corp had long cast a shadow over the company’s strategic direction. By exiting the ownership structure, Prudence MacLeod, Elisabeth Murdoch, and James Murdoch—whose political views diverged from Lachlan’s—have eliminated potential conflicts that could have destabilized decision-making [2]. According to a report by The Economic Times, this resolution ensures the continuation of Fox’s conservative editorial stance, a critical factor for maintaining its brand identity and audience loyalty [3].

Lachlan’s control is further reinforced by the establishment of LGC Holdco, LLC, which now holds a majority stake in both Fox and News Corp. Rupert Murdoch, 94, retains the symbolic title of Chairman Emeritus, but the board has explicitly endorsed Lachlan’s leadership, citing his “vision and management” as pivotal to future success [4]. Analysts argue this clarity in governance reduces uncertainty, a key driver of investor confidence.

Strategic Initiatives: NFL Expansion and Digital Innovation

Fox’s 11-year NFL media rights agreement, extending through 2033, underscores its commitment to premium sports content. The deal includes exclusive NFC Championship coverage, holiday games, and expanded digital rights, with direct-to-consumer platforms and Tubi playing a central role [5]. As stated by Fox’s CEO, this partnership will “strengthen business flexibility and innovation in content delivery,” aligning with the company’s push into streaming [6].

The launch of Fox One, a streaming service targeting cord-cutters, complements this strategy. With a 40% revenue increase in the Television segment during Q3 2025, Fox’s diversified approach—spanning broadcast, sports, and AVOD (ad-supported video-on-demand)—has proven resilient [7]. The NFL deal, combined with Fox One, creates a flywheel effect: high-profile sports content drives subscriptions, which in turn boost advertising revenue and data insights for targeted programming.

Financial Performance and Shareholder Value

Fox’s Q3 2025 earnings report highlighted its financial strength, with revenue of $4.37 billion surpassing expectations and adjusted EPS of $1.10 exceeding forecasts by 23.6% [8]. The stock surged 6.47% in premarket trading following the results, reflecting optimism about its strategic pivot. Over the past 52 weeks, Fox shares have gained 43.3%, outperforming the S&P 500 and the Vanguard Communication Services Index [9].

Shareholder returns have also improved, with $300 million in share repurchases during Q1 2025 and a reaffirmed commitment to capital returns [10]. This focus on buybacks, alongside record political advertising revenue during the 2024 U.S. election cycle, demonstrates Fox’s ability to monetize its platforms in a fragmented media ecosystem.

Risks and Investor Considerations

Despite these positives, challenges remain. The dual-class voting structure, which grants the Murdoch family 41% of voting power with just 14% ownership, has drawn criticism from hedge funds like Starboard Value, which argue it prioritizes family interests over broader shareholders [11]. However, the recent resolution of the trust dispute has mitigated immediate risks of power-sharing arrangements, at least until 2050.

Additionally, the NFL contract’s long-term viability depends on sustained viewership and the ability to adapt to cord-cutting trends. While Fox One is a step in the right direction, competition from Disney’s ESPN+ and Amazon’s Prime Video remains fierce.

Conclusion

Lachlan Murdoch’s consolidated control has brought much-needed stability to Fox Corporation, enabling a clear strategic focus on sports, streaming, and shareholder returns. While governance concerns persist, the company’s recent financial performance and bold media deals suggest it is well-positioned to navigate the challenges of a rapidly changing industry. For investors, the combination of strong leadership, diversified revenue streams, and a resilient brand offers a compelling case for long-term value creation.

Source:
[1] Fox Corporation Announces Resolution of Murdoch Family Trust Matter [https://www.prnewswire.com/news-releases/fox-corporation-announces-resolution-of-murdoch-family-trust-matter-302549776.html]
[2] Murdoch family resolves trust dispute, James and sisters exit Fox [https://www.investing.com/news/company-news/murdoch-family-resolves-trust-dispute-james-and-sisters-exit-fox-93CH-4229948]
[3] Real-life 'Succession' ends: Rupert Murdoch's eldest son takes control [https://m.economictimes.com/news/international/business/real-life-succession-ends-rupert-murdochs-eldest-son-lachlan-takes-control-and-siblings-take-cash/articleshow/123776173.cms]
[4] Fox Corp Resolves Murdoch Trust Dispute, Lachlan Takes Control [https://www.stocktitan.net/news/FOXA/fox-corporation-announces-resolution-of-murdoch-family-trust-wpoo803y117h.html]
[5] Fox Corporation Announces New Eleven-Year Media Rights Agreement with the National Football League [https://www.prnewswire.com/news-releases/fox-corporation-announces-new-eleven-year-media-rights-agreement-with-the-national-football-league-301250596.html]
[6] Fox Corporation Announces Resolution of Murdoch Family Trust [https://www.foxcorporation.com/news/corp-press-releases/2025/fox-corporation-announces-resolution-of-murdoch-family-trust-matter/]
[7] Earnings call transcript: Fox Corp's Q3 2025 earnings beat expectations [https://www.investing.com/news/transcripts/earnings-call-transcript-fox-corps-q3-2025-earnings-beat-expectations-93CH-4039271]
[8] Fox stock falls after Murdoch family announces trust resolution [https://www.investing.com/news/stock-market-news/fox-stock-falls-after-murdoch-family-announces-trust-resolution-and-secondary-offering-93CH-4229987]
[9] Do Wall Street Analysts Like Fox Corporation Stock? [https://www.barchart.com/story/news/34397408/do-wall-street-analysts-like-fox-corporation-stock]
[10] Fox Corporation - Market Insights Report [https://www.marketreportanalytics.com/companies/FOX]
[11] As the Murdoch succession battle plays out in a US court [https://www.theguardian.com/media/2024/sep/18/news-corp-rupert-murdoch-control-voting-power-family-trust-trial]