Murdoch Could Step Down As BSkyB Chairman
Rupert Murdoch could step aside as chairman of BSkyB in an attempt to calm shareholder unease over plans to appoint his son chief executive of the satellite television company.
It emerged last week that Ball is in ‘informal but intense’ talks with Murdoch, whose News Corporation controls over 35% of BSykB, about his future at the television company following the expiry of his contract in June next year (see Ball Could Depart BSkyB After Management Restructure).
Investors fear that Murdoch would use the appointment of his son as a way to divert cash from BSkyB into other parts of his media empire. The company celebrated profits of £128 million this year and shareholders are keen to receive some reward after supporting its costly transfer from analogue to digital technology (see BSkyB Results Beat Market Expectations As Subs Hit 6.8m).
According to the Observer, Murdoch would not relinquish his control of the company, but is considering whether to appoint a successor in a bid to appease shareholders who are unhappy about the proposed changes.
It is understood that a number of senior News Corp executives have been earmarked to step up to an enhanced deputy chief executive role to support James Murdoch while he learns the ropes. They include chief operating officer Richard Freundenstein; former Sun editor David Yelland; Sky Networks managing director Dawn Airey and finance director Martin Stewart.
Shares in BSkyB were down 14.5p at 622p at 11am today.
