Allied Journal


News Corp says James Murdoch best pick for BSkyB CEO
12 Oct 2003

News Corporation President Peter Chernin threw his weight behind James Murdoch in the controversial battle for the top job at Britain's BSkyB, saying he was the best person for the job.

Chernin said in an interview the U.S. entertainment giant led by James's father Rupert Murdoch had a good track record of picking CEOs for its part-owned pay television company BSkyB and James had the best experience of the candidates in play.

"James is a remarkably talented executive. I don't think there is anybody in the pay television industry that has had the success he's had over the last three years," Chernin told Reuters at the Mipcom television festival in Cannes on the southern French coast at the weekend.

"We believe James is the best person to do this job...He either has or will be applying for the job".

Speculation grew among television executives in Cannes that Walt Disney Television International President David Hulbert would also throw his hat into the ring, joining various internal candidates competing for the top job. However, they face a tough battle against News Corp.'s favoured candidate.

The suggestion that Rupert Murdoch, who is chairman of both BSkyB and News Corp., could install his son to head BSkyB has irked shareholders concerned the company would lose its independence. Investors have also questioned whether 30-year-old James has enough experience and is the best candidate.

News Corp., whose empire spans Hollywood's Twentieth Century Fox to publishing house HarperCollins, owns 35 percent of BSkyB.

Sources close to News Corp. say Murdoch would not step down as chairman of BSkyB were James to take the CEO job. However, Chernin said News Corp. had always acted in the best interest of BSkyB's shareholders.

"We have never done anything at BSkyB that isn't in the best interest of that company and I think the results speak for themselves," said Chernin, who is also chief operating officer at News Corp.

"I don't think anyone can point to a single instance when News Corp. has benefited at the expense of BSkyB shareholders... it's not like we've been raping the company".

RIGHT-HAND MAN

Chernin, who is widely regarded as Rupert Murdoch's right-hand man, said he had no desire to move to a bigger role at another media company, despite the fact that Murdoch is likely to hand the reins to one of his sons.

"It's not too dissimilar to what Mel Karmazin said when he signed up at Viacom: I believe this is the best media company in the world and I run a huge portion of the company and I don't lack for challenges or responsibilities," said Chernin, who was at Mipcom to receive the "personality of the year" award.

"I'd rather be doing this than being number one at a lesser company".

Like Chernin, Karmazin is chief operating officer to a CEO and Chairman who owns a large part of the company and is highly respected in the investment community.

Rupert Murdoch's older son Lachlan is widely seen as the most likely to succeed the media baron at the head of News Corp. However, James is also expected to play a major role.

James currently runs News Corp's Asian pay television operation Star TV and already sits on BSkyB's board.

Seeking to head off a fight with investors, BSkyB has appointed an independent committee to search for a new CEO.

BSkyB CFO Martin Stewart has applied for the job, one source familiar with the situation said earlier this month. Others are expected to include BSkyB COO Richard Freudenstein.

Disney's Hulbert declined to comment on whether he would apply.

"We want nothing other than the best person to run that company," said Chernin.

"I think what institutional shareholders have been most upset about is process. I think they want to know that this is being investigated by an independent nominating committee".
News Corporation President Peter Chernin threw his weight behind James Murdoch in the controversial battle for the top job at Britain's BSkyB, saying he was the best person for the job.

Chernin said in an interview the U.S. entertainment giant led by James's father Rupert Murdoch had a good track record of picking CEOs for its part-owned pay television company BSkyB and James had the best experience of the candidates in play.

"James is a remarkably talented executive. I don't think there is anybody in the pay television industry that has had the success he's had over the last three years," Chernin told Reuters at the Mipcom television festival in Cannes on the southern French coast at the weekend.

"We believe James is the best person to do this job...He either has or will be applying for the job".

Speculation grew among television executives in Cannes that Walt Disney Television International President David Hulbert would also throw his hat into the ring, joining various internal candidates competing for the top job. However, they face a tough battle against News Corp.'s favoured candidate.

The suggestion that Rupert Murdoch, who is chairman of both BSkyB and News Corp., could install his son to head BSkyB has irked shareholders concerned the company would lose its independence. Investors have also questioned whether 30-year-old James has enough experience and is the best candidate.

News Corp., whose empire spans Hollywood's Twentieth Century Fox to publishing house HarperCollins, owns 35 percent of BSkyB.

Sources close to News Corp. say Murdoch would not step down as chairman of BSkyB were James to take the CEO job. However, Chernin said News Corp. had always acted in the best interest of BSkyB's shareholders.

"We have never done anything at BSkyB that isn't in the best interest of that company and I think the results speak for themselves," said Chernin, who is also chief operating officer at News Corp.

"I don't think anyone can point to a single instance when News Corp. has benefited at the expense of BSkyB shareholders... it's not like we've been raping the company".

RIGHT-HAND MAN

Chernin, who is widely regarded as Rupert Murdoch's right-hand man, said he had no desire to move to a bigger role at another media company, despite the fact that Murdoch is likely to hand the reins to one of his sons.

"It's not too dissimilar to what Mel Karmazin said when he signed up at Viacom: I believe this is the best media company in the world and I run a huge portion of the company and I don't lack for challenges or responsibilities," said Chernin, who was at Mipcom to receive the "personality of the year" award.

"I'd rather be doing this than being number one at a lesser company".

Like Chernin, Karmazin is chief operating officer to a CEO and Chairman who owns a large part of the company and is highly respected in the investment community.

Rupert Murdoch's older son Lachlan is widely seen as the most likely to succeed the media baron at the head of News Corp. However, James is also expected to play a major role.

James currently runs News Corp's Asian pay television operation Star TV and already sits on BSkyB's board.

Seeking to head off a fight with investors, BSkyB has appointed an independent committee to search for a new CEO.

BSkyB CFO Martin Stewart has applied for the job, one source familiar with the situation said earlier this month. Others are expected to include BSkyB COO Richard Freudenstein.

Disney's Hulbert declined to comment on whether he would apply.

"We want nothing other than the best person to run that company," said Chernin.

"I think what institutional shareholders have been most upset about is process. I think they want to know that this is being investigated by an independent nominating committee".


 

 


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