Murdoch primed for BSkyB

THE British broadcaster BSkyB said has said the chief executive who put it in profit was leaving, and investors were concerned his job will go to the relatively untested youngest son of media baron Rupert Murdoch.

British Sky Broadcasting Group Plc confirmed long-standing speculation that its chief executive, Tony Ball, who steered the company from a loss-maker into London’s most valuable media stock, had decided not to renew his contract.

The company said Ball, who joined the firm in June 1999, will continue as chief executive until a successor was appointed. It said this was likely to be well before Ball’s current contract ends on May 31, 2004.

But many felt it had already chosen its heir apparent. Murdoch’s father Rupert owns 34% of the pay-TV company.

“James Murdoch looks like the odds-on favourite,” said SG Securities analyst Anthony de Larrinaga.

BSkyB shares were up 1% at 627.5 pence in morning trade, but they have fallen from around 660p since speculation about James Murdoch, 30, taking over from Ball first surfaced.

The upcoming change of guard has unsettled many investors concerned about James Murdoch’s suitability.

“The bad news is he’s one of the most respected CEOs in the FTSE. But why is Ball stepping down and is Murdoch going to put one of his sons in charge? That’s the bear story,” said a dealer at a London bank.

James Murdoch dropped out of Harvard to found the hip-hop record label Rawkus before returning to the family business, running News Corp’s internet units until he became CEO of Murdoch’s Asian satellite broadcaster, Star TV, in 2000.