Lachlan Murdoch, Rupert Murdoch's oldest son and the media mogul's heir apparent, yesterday appeared to sacrifice the chance to run one of the world's biggest media companies by resigning his executive roles at News Corporation to move back to Australia with his family.
The move, which News Corp executives said came as a shock, seemed to affect Rupert Murdoch deeply.
In an uncharacteristic display of emotion, the 74-year-old chairman and chief executive, who has made no secret of his desire to pass on the company he built to his children, said he was "particularly saddened" by his son's decision.
The departure of 33-year-old Lachlan Murdoch is expected to make it more likely that Peter Chernin, the well-respected president and chief operating officer of News Corp, will succeed Mr Murdoch as head of a group that includes newspapers, the Fox studios, television and cable businesses and satellite pay-television services around the world.
"Investors had been concerned by the issue of nepotism at News Corp," said Richard Greenfield, analyst with Fulcrum.
"Operationally, Lachlan's departure will not change much. But it is clear that the most likely successor to Rupert Murdoch is now Peter Chernin."
James Murdoch, Lachlan's 32-year-old brother and chief executive of British Sky Broadcasting, is now the only one of Mr Murdoch's six children who still has a prominent role at News Corp.
He is expected to continue to run the UK pay-television business for the time being.
Lachlan Murdoch, who as deputy chief operating officer had oversight of the New York Post newspaper, Australian newspapers, US television business and HarperCollins publishing, will remain on the board of News Corp.
He said he would return to Australia from New York, the site of News Corp's corporate headquarters, to spend time with his family.
His wife, the model Sarah O'Hare, is believed to prefer living in Sydney.
"I would like especially to thank my father for all he has taught me in business and in life," Lachlan Murdoch said.
Elisabeth Murdoch, the elder sister of Lachlan and James, was a director at BSkyB before she bowed out in 1999.
It is unclear what Lachlan Murdoch will do in Australia. - (Financial Times Service)
