James Murdoch will be in pole position to succeed Peter Chernin when News Corporation's chief operating officer's contract expires in 2009, people familiar with the company said yesterday.
Rupert Murdoch's youngest son secured his position as the most likely heir to his father's US media empire when it emerged yesterday that he will run News Corp's European and Asian operations from London.
James Murdoch (34) will establish an independent power base distinct from his father's office in New York and Mr Chernin's American west coast empire.
The decision to stay in London, described by friends as driven by family considerations, will give the younger Mr Murdoch a hands-on role in News Corp's UK newspapers as well as British Sky Broadcasting (BSkyB), which yesterday confirmed that he was moving from chief executive to chairman of the satellite broadcaster. Rupert Murdoch told BSkyB five weeks ago that he would step down as chairman to focus on Dow Jones after the purchase of the media group is completed next week. James Murdoch warned BSkyB of his move at the same time.
Rupert Murdoch's focus on Dow Jones was underlined as News Corp moved to sell its interest in Gemstar-TV Guide International. The company, in which News Corp has a 41 per cent stake, was sold to Macro-vision in a $2.8 billion (€1.9 billion) cash and stock deal.
Rupert Murdoch paid about $3 billion in 1988 for TV Guide, a television listings magazine that grew to include online and cable guides. However, the investment proved to be a rare disaster for News Corp, leading to billions of dollars in writedowns as the magazine lost subscribers.
