Lachlan Murdoch still has a way to go as Rupert’s shadow looms

No one from Anthony Albanese’s victorious Labor government attended this year.

Albanese may be overseas, but acting PM Richard Marles – never one to hide his ambition – was also a no-show.

This was not the case at last year’s party with Rupert Murdoch himself in attendance having just flown in for his first visit to Australia in years.

Albanese, no doubt, had his “five minutes with god”, as the private meetings with Rupert were described by one attendee. With a federal election pending, the prime minister would have been keen to hedge his bets with the still-powerful Murdoch media empire.

But Labor’s stunning victory in May, probably offered the clearest indication of the Murdoch empire’s waning power over its spiritual homeland. Something that may equally apply to all media.

The question for Lachlan is – ego aside – whether it is an issue for him, given how his father wielded political power to further his business interests across Australia, the UK, and later the US for more than half a century.

News Corp’s record share price this year has nothing to do with its financially struggling media business in Australia. Its success is anchored by the US Dow Jones/Wall Street Journal, its book publishing and Lachlan’s wildly successful bet on property group REA.

As with Murdoch’s Fox Corp – which has soared under the Trump presidency – the US is where it really needs to wield political power.

On a more personal note, one of the most telling details concerned Lachlan’s ongoing relationship with former loyal lieutenant Siobhan McKenna following her abrupt departure barely a month ago from both News and Lachlan’s private media interests like Nova.

She was the first to show up to his party on Thursday and stayed until late.

McKenna, whose relationship with Lachlan pre-dates her News Corp executive roles, was the architect of the series of legal battles and negotiations that ultimately delivered Lachlan control of the Murdoch media empire just months ago. But it came at quite a cost – and not just in terms of the brutal battle with his elder siblings that appears to have ruptured family relations in a manner that Lachlan and Rupert may never mend.

Lachlan’s low-ball offer to buy out his siblings in 2019 was rejected. McKenna’s bold plan in 2023 to change the terms of the “irrevocable trust” and hand Lachlan control without paying a cent – by arguing Lachlan’s control was in the best interests of all trust beneficiaries – also failed dismally.

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It left them with the financially painful option of buying out James, Elisabeth and Prudence at market prices.

The $5 billion financial cost of the settlement forced him to loosen the family trust’s control of both News Corp and Fox by selling voting shares and taking out loans secured against a significant number of the shares the family still owns.

McKenna’s abrupt departure so soon after Lachlan finally reached an agreement with his siblings, and his tepid response to her severing all business relationships with him, was seen in some quarters as a sign of his displeasure at how this succession drama had played out.

As News Corp global boss Robert Thomson said in a note to staff announcing her departure: “Her decision, as it is her decision, is essentially epochal as Siobhan has been a transformational force during her years with News Corp.”

But her departure could equally be interpreted as McKenna outgrowing her role with Lachlan after delivering him control of the family empire – especially following the sale of News Corp-controlled Foxtel this year, which she was closely involved with.

Whatever the real story, Lachlan had a lot more to contemplate – as McKenna departed Thursday evening – than his magnificent view.

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