SKY Sky

   (FROM THE WALL STREET JOURNAL 1/30/16) 
   By Simon Zekaria 

LONDON -- Sky PLC on Friday appointed James Murdoch as chairman, four years after he stepped down from the role amid a phone-hacking scandal that engulfed News Corp's U.K. newspaper business.

Mr. Murdoch is chief executive of media-and-entertainment company 21st Century Fox Inc., which holds a 39% stake in Sky. His elevation at Sky, where he also once served as chief executive, comes as the pay-television giant seeks to hone its expanded European media operations.

Mr. Murdoch, whose father is News Corp and Fox Executive Chairman Rupert Murdoch, resigned as chairman of Sky -- then known as British Sky Broadcasting Group -- in April 2012 as News Corp aimed to shield the prized asset from a scandal over illegal voice-mail interception and alleged bribery of police at its British newspaper division.

At the time, News Corp held the stake in Sky now controlled by Fox, which was part of the same company as Wall Street owner News Corp until June 2013.

Mr. Murdoch's resignation from BSkyB was the culmination of a string of moves that had eroded his responsibilities. Two months before stepping down, he had relinquished his oversight of News International, the U.K. newspaper unit at the center of the scandal over reporting methods. He had taken charge of the unit in 2007 when he moved to News Corp from BSkyB, where he was CEO.

At the time of his resignation, Mr. Murdoch said in a letter that he didn't want his position as BSkyB chairman to be a "lightning rod" for the company. Mr. Murdoch remained on the board of Sky as a nonexecutive director.

Mr. Murdoch, who was BSkyB CEO from 2003 to 2007, will succeed Nicholas Ferguson as chairman. Mr. Ferguson is stepping down at the end of April after four years in the role. Sky also appointed Martin Gilbert, chief executive of Aberdeen Asset Management PLC, as deputy chairman.

Sky Chief Executive Jeremy Darroch on Friday said that Mr. Murdoch, who is 43 years old, had the "unanimous support" of the board. "We have had a chance to see him in operation," he said, adding: "He is the right man for the job."

Mr. Darroch also dismissed speculation linking the appointment to a potential takeover of Sky by Fox.

"There is speculation [about] what Fox's intentions are. We don't get distracted by that," he said. Fox declined to comment.

(END) Dow Jones Newswires

January 30, 2016 02:47 ET (07:47 GMT)

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