James Murdoch, News Corp.’s embattled deputy chief operating officer, has resigned as executive chair of the company’s U.K. newspaper operation with his relocation to New York.
CEO Rupert Murdoch praised his son’s “lasting contributions to the group’s strategy in paid digital content and his efforts to enhance governance programs.”
His departure comes on the heels of the release of a Scotland Yard report that News International’s Sun newspaper had a culture of corruption, where top executives authorized the payment of bribes to police.
News Corp. maintains that practices outlined in the official report no longer are present at the Sun, which launched a Sunday edition last week to fill the void left with the shutdown of the News of the World tabloid in the aftermath of the hacking scandal.
In New York, the younger Murdoch will focus on pay-TV business. He once had oversight for News Corp.’s Star TV, Sky Deutschland, Sky Italia and BSkyB.
Meanwhile, News Corp. COO Chase Carey told investors at a Deutsche Bank conference on Feb. 28 that the company has talked about spinning off the British newspapers.
Newspapers account for less than 20 percent of overall income and are “significantly” down from last year, according to Carey.
He said management is aware that the newspaper operation has been a drag of News Corp.’s stock price.