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| Version 2 | Version 3 |
|---|---|
| Murdoch handed pivotal media role | Murdoch handed pivotal media role |
| (10 minutes later) | |
| James Murdoch, the son of Rupert Murdoch, is to take control of News Corporation's operations in the UK, Europe and Asia. | James Murdoch, the son of Rupert Murdoch, is to take control of News Corporation's operations in the UK, Europe and Asia. |
| This makes the 34-year-old arguably the most powerful individual in British media and marks him out as the heir apparent to his mogul father. | |
| He will run News Corp's UK newspapers, including the Times and the Sun, and Asian satellite TV arm, Star TV. | He will run News Corp's UK newspapers, including the Times and the Sun, and Asian satellite TV arm, Star TV. |
| BSkyB announced that he would leave his post as the firm's chief executive. | BSkyB announced that he would leave his post as the firm's chief executive. |
| "James is a talented and proven executive with a rare blend of international perspective and deep, hands-on experience in improving operational results," Rupert Murdoch said. | "James is a talented and proven executive with a rare blend of international perspective and deep, hands-on experience in improving operational results," Rupert Murdoch said. |
| Rupert Murdoch has stepped down as Sky's non-executive chairman to be replaced by his son. | Rupert Murdoch has stepped down as Sky's non-executive chairman to be replaced by his son. |
| Governance issue | Governance issue |
| News Corp will be reconstructed to carve out Europe and Asia as a discrete business division under James Murdoch as its chairman and chief executive. | News Corp will be reconstructed to carve out Europe and Asia as a discrete business division under James Murdoch as its chairman and chief executive. |
| He is currently chief executive of British Sky Broadcasting, in which News Corp holds 39%. | He is currently chief executive of British Sky Broadcasting, in which News Corp holds 39%. |
| James Murdoch will give up his executive duties at Sky, to be replaced as chief executive by the finance director Jeremy Darroch. | James Murdoch will give up his executive duties at Sky, to be replaced as chief executive by the finance director Jeremy Darroch. |
| However, the board of Sky decided it did not want to lose James Murdoch's services. | However, the board of Sky decided it did not want to lose James Murdoch's services. |
| So it has taken the controversial decision, against British corporate governance best practice, to appoint him as non-executive chairman, in succession to Rupert Murdoch. | So it has taken the controversial decision, against British corporate governance best practice, to appoint him as non-executive chairman, in succession to Rupert Murdoch. |
| "Sky has strong independent directors and we were quite clear that our overriding duty in selecting a chairman was to do what was in the best interest of the company and its shareholders," said Nicholas Ferguson, Sky's senior independent non-executive director. | "Sky has strong independent directors and we were quite clear that our overriding duty in selecting a chairman was to do what was in the best interest of the company and its shareholders," said Nicholas Ferguson, Sky's senior independent non-executive director. |
| "The appointment of James meets this key test." | "The appointment of James meets this key test." |
| British investment institutions dislike chief executives becoming chairmen of their respective companies. | British investment institutions dislike chief executives becoming chairmen of their respective companies. |
| So Sky's British shareholders are bound to complain about James Murdoch's elevation to the chairmanship. | So Sky's British shareholders are bound to complain about James Murdoch's elevation to the chairmanship. |
| However, Sky non-executives have sounded out the group's leading US shareholders - including Templeton, Capital and Janus - and believe they are supportive of the management reorganisation. | However, Sky non-executives have sounded out the group's leading US shareholders - including Templeton, Capital and Janus - and believe they are supportive of the management reorganisation. |
| Les Hinton, who currently runs Rupert Murdoch's British newspapers, is to become chief executive of Dow Jones, the financial news business recently bought by News Corporation. | Les Hinton, who currently runs Rupert Murdoch's British newspapers, is to become chief executive of Dow Jones, the financial news business recently bought by News Corporation. |