Lachlan Murdoch, considered a frontrunner to succeed his 74-year-old father Rupert as chairman and chief executive of News Corp today resigned as an executive at the media conglomerate.
The younger Murdoch (33) will leave his post as deputy chief operating officer at News Corp. and publisher of the New York Posttabloid newspaper on August 31 but will remain on the board, News Corp said.
"I am particularly saddened by my son's decision and thank him for his terrific contribution to the company," Rupert Murdoch said in a statement issued by the company.
Lachlan Murdoch's resignation makes his 32-year-old brother James Murdoch, currently ceo of UK satellite TV broadcaster BSkyB, the more likely heir apparent to succeed their father as the head of News Corp.
The company, which owns the Twentieth Century Fox film studio, Britain's Timesnewspaper, the Fox US television network and the HarperCollins book publisher, is also BSkyB's largest shareholder, and Rupert Murdoch is BSkyB's chairman.
James was CEO of the media conglomerate's Asian satellite unit before being named BSkyB's top executive in 2003.
He faced fierce opposition from institutional shareholders, who claimed the CEO search was designed to ensure his ascension and who feared that BSkyB's formidable cash-flow would be used to fund News Corp. acquisitions.
A spokesman for BSkyB, when asked how long James Murdoch planned to stay on as CEO, declined to comment. BSkyB shares were up 1.3 per cent to 532-1/2 pence at 12.25pm.