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James Murdoch to Return as Sky Chairman James Murdoch to Return as Sky Chairman
(10 days later)
The British pay television group Sky said on Friday that James Murdoch was returning as chairman almost four years after his humiliating departure at the height of the News Corporation The British pay television group Sky said on Friday that James Murdoch was returning as chairman almost four years after his humiliating departure at the height of the News Corporation phone-hacking scandal.
phone-hacking scandal. The announcement follows the recent return of another central figure in the scandal, Rebekah Brooks, and it has propelled speculation that the Murdoch family may be preparing to reassert itself in the European media landscape through a new takeover bid for Sky. Rupert Murdoch’s company 21st Century Fox owns a 39 percent stake in Sky.
The announcement follows the recent return of another central figure in the scandal, Rebekah Brooks, and it has propelled speculation that the Murdoch family may be preparing to reassert itself in the European media landscape through a new takeover bid for Sky. The company’s United States unit, 21st Century Fox, owns a 39 percent stake in Sky.
“We’re delighted that James Murdoch has agreed to step into the role of chairman,” Sky’s chief executive, Jeremy Darroch, said in a statement that accompanied the British broadcaster’s six-month financial results. “James’s deep knowledge of the international media industry and his passion for supporting Sky’s ongoing success will make an even greater contribution to our business in the future.”“We’re delighted that James Murdoch has agreed to step into the role of chairman,” Sky’s chief executive, Jeremy Darroch, said in a statement that accompanied the British broadcaster’s six-month financial results. “James’s deep knowledge of the international media industry and his passion for supporting Sky’s ongoing success will make an even greater contribution to our business in the future.”
Mr. Murdoch, 43, is the younger son of News Corporation’s founder, Rupert Murdoch, and is the chief executive of 21st Century Fox, a position to which he was appointed in June, succeeding his father. At Sky, he will replace the current chairman, Nicholas Ferguson, who will step down in April. Mr. Murdoch, 43, is the younger son of Rupert Murdoch, News Corporation’s founder, and is the chief executive of 21st Century Fox, a position to which he was appointed in June, succeeding his father. At Sky, he will replace the current chairman, Nicholas Ferguson, who will step down in April.
From 2007 to 2012, the younger Mr. Murdoch was the chairman of Sky, one of the most prominent jobs in British media, and he was widely considered the heir apparent to lead his father’s multibillion-dollar global empire.From 2007 to 2012, the younger Mr. Murdoch was the chairman of Sky, one of the most prominent jobs in British media, and he was widely considered the heir apparent to lead his father’s multibillion-dollar global empire.
But revelations in 2011 that reporters at a Sunday tabloid, News of the World, had hacked the mobile phone of a young British murder victim and listened to her voice mail messages quickly developed into a scandal that engulfed News Corporation’s British newspaper business.But revelations in 2011 that reporters at a Sunday tabloid, News of the World, had hacked the mobile phone of a young British murder victim and listened to her voice mail messages quickly developed into a scandal that engulfed News Corporation’s British newspaper business.
Mr. Murdoch, who at the time also presided over the group’s holdings across Europe, the Middle East and Asia, was ultimately forced to oversee the closing of News of the World as well as the withdrawal of a $12 billion offer for the remaining 61 percent of Sky, which at the time was known as BSkyB.Mr. Murdoch, who at the time also presided over the group’s holdings across Europe, the Middle East and Asia, was ultimately forced to oversee the closing of News of the World as well as the withdrawal of a $12 billion offer for the remaining 61 percent of Sky, which at the time was known as BSkyB.
Mr. Murdoch was never found to have had direct knowledge of the hacking by members of the paper’s staff. But a parliamentary committee investigating the scandal accused him of “willful ignorance” after he acknowledged having failed to read emails that referred to settlement payments made to hacking victims. Mr. Murdoch resigned as chairman in early 2012, he said, to avoid becoming a “lightning rod” for Sky. He retained his seat on the board.Mr. Murdoch was never found to have had direct knowledge of the hacking by members of the paper’s staff. But a parliamentary committee investigating the scandal accused him of “willful ignorance” after he acknowledged having failed to read emails that referred to settlement payments made to hacking victims. Mr. Murdoch resigned as chairman in early 2012, he said, to avoid becoming a “lightning rod” for Sky. He retained his seat on the board.
The scandal also ensnared a number of Mr. Murdoch’s other senior British lieutenants, including Ms. Brooks, now 47, who was reinstated in September as chief executive of News UK — publisher of The Times of London, The Sunday Times and the tabloid The Sun — after a court cleared her of criminal wrongdoing in the hacking case.The scandal also ensnared a number of Mr. Murdoch’s other senior British lieutenants, including Ms. Brooks, now 47, who was reinstated in September as chief executive of News UK — publisher of The Times of London, The Sunday Times and the tabloid The Sun — after a court cleared her of criminal wrongdoing in the hacking case.
News Corporation spun off its publishing operations in 2013, and with it News UK. Sky is part of News Corporation’s larger entertainment division. News Corporation spun off its publishing operations in 2013, and with it News UK.
“I think that as soon as Rebekah Brooks was acquitted there was a start of a way back for James,” said Claire Enders, chief executive of Enders Analysis, a media research firm in London. “I think this is going to be very positively viewed, but not simply because people will say they could reignite the bid” for Sky, she said.“I think that as soon as Rebekah Brooks was acquitted there was a start of a way back for James,” said Claire Enders, chief executive of Enders Analysis, a media research firm in London. “I think this is going to be very positively viewed, but not simply because people will say they could reignite the bid” for Sky, she said.
Despite the taint of the hacking scandal, which cost him many of his influential political friends in Britain, at least temporarily, analysts said that James Murdoch was widely respected in European media circles as a pay-TV visionary whose early investments in technology helped secure Sky’s dominance in broadband and enabled the development of new digital product lines that were emulated by rivals.Despite the taint of the hacking scandal, which cost him many of his influential political friends in Britain, at least temporarily, analysts said that James Murdoch was widely respected in European media circles as a pay-TV visionary whose early investments in technology helped secure Sky’s dominance in broadband and enabled the development of new digital product lines that were emulated by rivals.
“There is also the Murdoch brand advantage,” Ms. Enders said. “When people speak to him, they believe — and rightly so — that they are speaking to the strategic thinker who connects the dots at the mother ship.”“There is also the Murdoch brand advantage,” Ms. Enders said. “When people speak to him, they believe — and rightly so — that they are speaking to the strategic thinker who connects the dots at the mother ship.”
Another factor fanning speculation of a renewed takeover bid was the choice of a City of London veteran, Martin Gilbert, to become deputy chairman of Sky. Mr. Gilbert, 60, is chief executive of Aberdeen Asset Management, which has grown in recent years through a series of acquisitions to become one of Europe’s largest listed fund managers.Another factor fanning speculation of a renewed takeover bid was the choice of a City of London veteran, Martin Gilbert, to become deputy chairman of Sky. Mr. Gilbert, 60, is chief executive of Aberdeen Asset Management, which has grown in recent years through a series of acquisitions to become one of Europe’s largest listed fund managers.
Sky reported a 12 percent rise in operating profit for the six months to Dec. 31, to 747 million pounds, or about $1.1 billion. Revenue for the period rose by 5 percent to £5.72 billion.Sky reported a 12 percent rise in operating profit for the six months to Dec. 31, to 747 million pounds, or about $1.1 billion. Revenue for the period rose by 5 percent to £5.72 billion.