SYDNEY - James Murdoch is the heir apparent to his father Rupert's global media empire now that his brother, Lachlan, has chosen to value his family above his powerful job.
But James Murdoch may have to serve a long apprenticeship under News Corp's highly respected president and chief operating officer
Peter Chernin before he gets close to picking up the reins, analysts say.
"This remains a long-term issue as we continue to expect Chernin will take the helm of the company when Rupert Murdoch retires," Merrill Lynch analysts said in a report.
Lachlan Murdoch, 33, and James Murdoch, 32, were being groomed to succeed their 74-year-old father.
But Lachlan Murdoch's shock decision to quit as deputy chief operating officer and return to Sydney leaves James Murdoch, chief executive of BSkyB and the youngest son from Rupert Murdoch's second marriage, as heir apparent.
The resignation is expected to have only minor impact on operations and the share price because operational control remains in the hands of Rupert Murdoch's number two, Chernin.
The market breathed a sigh of relief last year when Chernin signed a new five-year contract ensuring strong and stable management would continue if anything happened to Rupert Murdoch.
There had been fears that Chernin, whose package in 2001-2002 was US$17.3 million ($25.4 million) against chairman Murdoch's US$14.1 million, was having trouble agreeing to new terms.
Despite the market's confidence in Chernin, most analysts believe Rupert Murdoch still wants News Corp to remain under the control of a family dynasty rather than pass into the hands of an outsider.
One analyst said Lachlan Murdoch's resignation meant that succession, rather than concerns about operational matters, would likely be at the top of Rupert Murdoch's mind.
- AAP
