 |
| Media mogul Rupert
Murdoch (L) and his eldest son Lachlan (R), who last week
resigned from the family's News Corporation, have denied
reports the departure is related to a dispute over
inheritances, reports say(AFP/File/Odd
Andersen) | |
Media industry insiders buzzed over the possibility of palace intrigue at News Corp. after CEO
Rupert Murdoch's oldest son and heir
apparent, Lachlan, said on Friday he'll resign on Aug. 31
to return to Australia with his wife and son.
Lachlan Murdoch - a 33-year-old Princeton graduate known for his good
looks, a prominent tattoo on
his left forearm and his marriage to a Sports Illustrated swimsuit model -
said he'll remain on News Corp.'s board and serve as a consultant.
The elder Murdoch said in a statement that he is "saddened" by his
son's unexpected decision to step down.
As a practical matter, though, Lachlan's departure will have a "minimal
impact" on the company, Merrill Lynch analyst Jessica Reif Cohen says.
Lachlan Murdoch is deputy chief operating officer and reports to his
father. But the elder Murdoch depends heavily on COO Peter Chernin to run
key operations at the global film, TV programming and publishing empire,
which generated an estimated $23.7 billion in revenue in the fiscal year
ended in June.
Lachlan oversees slower-growing units, including Fox's 35 television
stations and book publisher HarperCollins. He's probably best known for
his work as publisher of the feisty New York Post tabloid
Still, his decision to leave reignited
speculation over whether BSkyB CEO James Murdoch, 32, or
Elisabeth Murdoch, 36, who runs a London-based production company called
Shine, might now be groomed to take over when Rupert, 74, gives up the
reins.
James "should eventually take control, but not until Mr. Chernin
decides to leave the company and/or the board deems him 'ready,' " Cohen
wrote in a report.
Others say it's too early to count Lachlan out.
"One of the benefits of being a Murdoch at News Corp. is that the
option of succession is always open to you," says UBS Investment
Research's Aryeh Bourkoff.
Many investors started to lose confidence in Lachlan after 2001 when he
made a big investment in an Australia telecom company that collapsed. He
was caught in another embarrassing snafu when the Post reported on its front
page that Democratic presidential candidate John Kerry had chosen Dick
Gephardt as his running mate. Kerry picked John Edwards.
(Agencies) |
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Updated: 2005-08-04 10:29
