James Murdoch Relinquishes BSkyB Chairmanship
Apparently taking too much heat from the scandals hounding his family's media empire, James Murdoch announced on Tuesday his resignation as chairman of British Sky Broadcasting (BSkyB).
In a statement, the younger Murdoch, touted as the next-in-line of News Corporation owner Rupert Murdoch, said that his exit from the British broadcasting industry should at least deflect further unsavoury stories being attached on his family's other business interests.
"I am aware that my role as chairman could become a lightning rod for BSkyB," Murdoch was quoted by The Associated Press (AP) as saying in his statement.
"I believe that my resignation will help to ensure that there is no false conflation with events at a separate organisation," Murdoch added.
The move was made amidst ongoing probes on Murdoch's possible involvement in the hacking scandals and bribery allegations that rocked the family's global media operations, which maintain significant presence in the United States, Britain and Australia.
Murdoch resigned as Ofcom, UK's telecommunication regulatory body, recently indicated that it was closely scrutinising all allegations of phone hacking and bribery trained against News Corp in order to determine if the company deserves to be awarded the right to take full ownership of BSkyB.
Ofcom is currently conducting what it calls as 'fit and proper' test, which covers the conduct of executives running the companies that were under consideration for a broadcasting license, according to AP.
News Corp presently controls 39 percent of BSkyB but analysts said the issues that beset the media firm have fairly diminished its chances of acquiring majority ownership of the British satellite TV operation.
Murdoch's resignation, experts said, was made to rehabilitate the tarnished image of News Corp and possibly to provide the firm a fresh take on its British expansion plans.
The younger Murdoch's exit from BSkyB served as the latest of the executive positions that he had to give up in order to fend off more controversies from sticking too long on News Corp, which last year was compelled to close down key operations and issue compensations as ways to repair the damages that came with the phone hacking and bribery scandals.
Nicholas Ferguson was tapped to assume the position vacated by Murdoch, who retains a non-executive board seat on BSkyB, News Corp said.
The company, however, clarified that Murdoch will stay on as News Corp's deputy COO and will continue on his role as head of the company's global operations.
British lawmakers, some of them were targets of the phone hackings, greeted the news with glee.
"The mighty have fallen," was how British MP Chris Bryant described the event, according to AP.
"Two years ago the Murdochs were courted by all and sundry, and now James Murdoch is running away with his tail between his legs," Bryant said.
British Prime Minister David Cameron, who was linked with the hacking scandal, tried to distance himself from the development.
"It's obviously a matter for him, and a matter for the company, and of course its shareholders," Cameron curtly replied when asked about Murdoch's departure from BSkyB.
Cameron's former communication aide, Andrew Coulson, who edited the closed-down 'News of the World', has been arrested by British authorities in connection with the hacking allegations.