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DRUDGE REPORT FLASH 2005�




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XXXXX DRUDGE REPORT XXXXX SUN JULY 31, 2005 19:02:22 ET XXXXX

PAPER: DAD MURDOCH MEDDLED; FAMILY FIGHT OVER NEWS EMPIRE; AILES MAY OVERSEE TV STATIONS

The sudden exit of Rupert Murdoch's elder son, Lachlan, from his job at the NEWS CORP. came amid family tensions over future control of the company, it will be claimed on Monday.

The chief issue was Lachlan's feeling, which he expressed to several people close to him, that his father interfered in his business dealings and undermined him, particularly over the last 18 to 24 months, the NEW YORK TIMES is planning to report, newsroom sources tell the DRUDGE REPORT.

Another factor in Lachlan's departure, was the shifting family dynamics and the question of how the elder Murdoch's two youngest children with his third wife, Wendi Deng, would be treated under family trusts that control the company.

Last year, Murdoch initiated discussions to have the trusts changed to reflect the additions of his and Deng's daughters, Grace, 3, and Chloe, 2. "There is no dispute," Rupert Murdoch said in a statement released to the TIMES over the weekend. "All my children will be treated equally and I look forward to the day when Lachlan wants to return to NEWS CORPORATION."

There is also a possibility that media genuis Roger Ailes, who built the FOXNEWS CHANNEL from the ground up, and is a close ally of the elder Murdoch, will now have an expanded role in the company. Rupert Murdoch told his family that he and Ailes had discussed the subject of having Ailes, the chairman and chief executive of FOXNEWS, assume oversight of the 35 TV stations owned and operated by FOX.

Developing late...

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Filed By Matt Drudge
Reports are moved when circumstances warrant
http://www.drudgereport.com for updates
(c)DRUDGE REPORT 2005
Not for reproduction without permission of the author




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