Murdoch dynasty hangs in the balance
James Murdoch scaled the rungs of the global media empire that his father built. Now scandal taints the heir apparent, threatening to derail the expected succession and shaking the assumption that the Murdoch dynasty would preserve its tight grip over the multibillion-dollar business. Murdoch's answers to questions | How the scandal aroseUpdated: Jul 20, 2011 01:50 IST
James Murdoch scaled the rungs of the global media empire that his father built. Now scandal taints the heir apparent, threatening to derail the expected succession and shaking the assumption that the Murdoch dynasty would preserve its tight grip over the multibillion-dollar business.
Founder Rupert Murdoch, 80, has long expressed a wish to hand his publicly traded News Corp. to his offspring, and he retains the voting power to make key decisions. But shareholders and board members are said to be troubled by revelations of wrongdoing on Murdoch's watch, and feel the US-based company needs fresh leadership.
A pivotal moment for the family comes on Tuesday when the media mogul and his son testify before British lawmakers investigating the hacking and alleged police bribery at a now-shuttered tabloid, News of the World.
"The future is looking increasingly gray" for James Murdoch, said Ivor Gaber, professor of political journalism at City University London. "There are now investors, particularly in the United States, who are suggesting that the time has come to end the Murdochs' dynastic hold on News Corp."
Some analysts believe Murdoch is positioning 42-year-old daughter Elisabeth as a successor in the event that 38-year-old James, chief executive of his father's European and Asian operations, is forced to step aside or faces arrest.
Richard Hillgrove, a London-based public relations consultant and former commentator for Murdoch-owned newspapers in New Zealand described Elisabeth Murdoch, who is expected to join the board of News Corp. in October, as the "likely contender" for leadership of the company and noted that she appears "untainted and pretty clean" in comparison to the pressure bearing down on her brother, James.
Another Murdoch son, 39-year-old Lachlan, is on the board of News Corp., but he quit a high-level position in the company in 2005 and does not have a management role. He is saddled in part by the legacy of a failed investment in an Australian telecom company a decade ago.
Chase Carey, the American deputy chairman and president of News Corp., could step in to head the group as an option from outside the family. He previously worked with Fox television, a company holding.
Rupert Murdoch long considered resignation: Report
Embattled media baron Rupert Murdoch was considering stepping down as CEO of News Corp for more than a year, prior to the phone-hacking scandal that rocked his empire in the UK, a media report said on Tuesday.
"Even before the scandal erupted in recent weeks, the elder Murdoch had considered stepping down as CEO in favour of chief operating officer Chase Carey, according to people familiar with the situation," The Wall Street Journal said.
First Published: Jul 20, 2011 00:42 IST