Earlier this afternoon in the UK--this morning here in the States--James Murdoch resigned as chairman of BSkyB, the biggest operator in the UK.
Mr Murdoch decided to quit now ahead of what is likely to be a critical report by the Culture, Media and Sport Select Committee at the end of the month into allegations of phone hacking.
The media select committee report is likely to raise fresh questions about Mr Murdoch’s role as chief executive of News International during the phone hacking scandal.
He admitted he did not read an email from senior executives about the widespread nature of the allegations.
It is believed that Mr Murdoch thought it is better to go now than being seen to be “forced out” by a critical report. He is also due to appear before the Leveson Inquiry into media ethics with his father, Rupert, at the end of the month.
No doubt Murdoch
fils knew this report was going to be the equivalent of an A-bomb. All indications were that he was going to be in for a severe grilling--one that would have likely raised questions about whether he was "fit and proper" to be chairman of BSkyB.
Murdoch père is feeling the heat as well. The Daily Mail reports that some of NewsCorp's shareholders are getting restless.
Shareholders Christian Brothers Investment Services (CBIS) will table a motion at the the company's annual general meeting later this year calling for the 81-year-old media mogul to go.
However, the resolution is unlikely to be passed because the Murdoch family control 40 per cent of votes but the move will put pressure on the board to reduce Rupert Murdoch's role.
The mere fact a motion is even being floated, though, tells you something about how deep the Murdochs are in the soup. And if Murdoch
fils read the tea leaves right, those calls are likely to get louder after that committee hearing.