As Murdoch Jnr quits BSKYB, did he jump before he was pushed?
JAMES Murdoch was forced to step down as chairman of BSKYB yesterday in the wake of the phone-hacking scandal.
The latest blow to his once glittering career comes only weeks after he quit as boss of his father Rupert’s British newspaper business and moved to the United States.
Following relentless pressure, the man once regarded as the corporate heir apparent to the Murdoch global media empire announced he was departing as chairman of the satellite broadcaster with immediate effect because he didn’t want his job to become a ‘lightning rod’ for BSKYB.
But many in the City regarded the move – meaning no Murdoch occupies a top position at the broadcaster for the first time in years – as a jump, before he was pushed out to distance the company from the scandal. Mr Murdoch’s departure comes as he braces himself for potentially damning criticism from a Parliamentary committee investigation into alleged illegal activities at the News of the World.
The Commons culture, media and sport committee report is due to be published at the end of the month – around the time that both Murdoch senior and junior are expected to give evidence to the Leveson Inquiry into Press standards. James Murdoch has faced fierce criticism over his handling of the phone-hacking scandal and repeated questioning of precisely how much he knew.
Committee chairman John Whittingdale, whose members heard from both Murdochs and recalled James after his evidence was disputed, said: ‘I had expected that he would have stepped down at the time it was announced he was returning to New York and it is perhaps surprising that it has taken this long.’
Mr Murdoch’s departure from the BSKYB post he held since 2007 follows his recent decisions to step down from the boards of auctioneer Sotheby’s and pharmaceutical firm Glaxosmithkline.
Broadcasting watchdog Ofcom is also investigating whether Mr Murdoch and News Corp – which owns 39 per cent of BSKYB – are deemed ‘fit and proper’ to be allowed a broadcasting licence via the satellite
‘Surprising it has taken so long’
TV firm in the light of evidence emerging at Leveson and police investigations into phone hacking.
Ofcom said last night that Mr Murdoch’s departure would not affect its investigation.
Mr Murdoch, who will stay on the BSKYB board as a non- executive director, said: ‘As attention continues to be paid to past events at News International, I am determined that the interests of BSKYB should not be undermined by matters outside the scope of this company.
‘I am aware that my role as chairman could become a lightning rod for BSKYB and I believe that my resignation will help to ensure that there is no false conflation with events at a separate organisation.’
He remains deputy chief operating officer of News Corp, based in New York, with responsibility for the company’s non-u.s. television interests such as Sky Italia.
His departure as BSKYB chairman follows pressure from shareholders concerned that phone-hacking allegations at News International are damaging the rest of the Murdoch empire. Police are continuing their investigations into phone hacking at the now defunct News of the World and payments to police officers and government officials at The Sun.
Last month Rebekah Brooks, Rupert Murdoch’s long-time confidante and a personal friend of David Cameron, was arrested with her husband, racehorse trainer Charlie Brooks, on suspicion of conspiracy to pervert the course of justice.
Asked about his reaction to Mr Murdoch stepping down, David Cameron said: ‘It’s obviously a matter for him, and a matter for the company, and its shareholders.’
Shareholder lobby group Pensions & Investment Research Consultants called for James Murdoch to leave the BSKYB board entirely, while his father Rupert, News Corp chief executive, released a statement thanking him for his ‘successful leadership’.
James had been viewed as his father’s heir apparent, in preference to elder brother Lachlan and sister Elisabeth. But recently there have been signs that Lachlan, who was previously being groomed as successor may have regained pole position.
Rupert’s third wife, the tigress-like Wendi Deng, is also a force to be reckoned with, as her spirited defence of her husband against a pie-thrower last year testifies.
Others point out that talk of succession ignores one major factor: Rupert Murdoch himself. Although he is 81, he shows no signs of retiring.
Former Scotland Yard counterterrorism chief John Yates was a guest at the wedding of the News of the World’s crime reporter, the Leveson Inquiry heard yesterday.
Lucy Panton said Mr Yates, who quit last year over the phone-hacking scandal, was just one of ‘many’ officers of all ranks present when she married a Scotland Yard detective.
Miss Panton was arrested in December on suspicion of making corrupt payments to police officers. She was later bailed and has not been charged.