News Corp Ups James Murdoch -- More Nepotism?
Less than two weeks after News Corp's board of directors was hit with a shareholders lawsuit accusing its chairman, Rupert Murdoch, of "larding the executive ranks of the company with his offspring," the company announced today (Wednesday) that it had named Murdoch's son James to the newly created post of deputy chief operating officer and international CEO. The shareholders lawsuit, filed by the Amalgamated Bank of New York and the Central Laborers Pension Fund of Illinois, came in response to a deal in which News Corp agreed to pay $675 million for daughter Elisabeth Murdoch's Shine Group and give her a seat on the board. James Murdoch, who has run Britain's BSkyB satellite television service, will relocate to New York, where he is expected to focus his attention on expanding News Corp's operations abroad. In a statement today, he said, "Around the world, the company's operations are increasingly fit and focused on priorities that can over time produce very significant returns. I feel extremely fortunate to continue to support News Corporation's international growth and also be given the chance to contribute to important initiatives across the company."