Rupert Murdoch’s six children are heading toward a hefty pay day.
Following the breakup of Murdoch’s media empire and completion of the sale of 21st Century Fox to Disney (DIS), each of Murdoch’s children will receive $2 billion, according to The Financial Times.
The FT determined that figure from the Murdoch Family Trust’s 17% share in 21st Century Fox (FOX), which Disney is buying for $38/share, and Fox’s share of Sky, which was sold to Comcast in September for $40 billion. The Murdoch family stake is worth a total of $12 billion by the FT’s calculation. This figure does not, however, include the family’s stake in News Corp or New Fox.
All six of Murdoch’s children are beneficiaries of the Murdoch Family Trust. His four adult children, Prudence, James, Lachlan, and Elisabeth are direct beneficiaries, while his teenage children from his marriage to Wendi Deng, Grace and Chloe, are beneficiaries but have no voting interest. Their stake is managed by trustees.
The Disney deal allows for investors to choose between a mix of cash and Disney shares. It is unclear whether Murdoch will allow his children to choose for themselves what they prefer; despite not having a financial interest in the trust, Murdoch continues to control it, reports the FT.