SYDNEY - Lachlan Murdoch, considered a frontrunner to succeed his 74-year-old father Rupert as chairman and chief executive of News Corp., on Friday resigned as an executive at the media conglomerate.
The younger Murdoch, 33, will leave his post as deputy chief operating officer at News Corp. and publisher of the New York Post tabloid newspaper on Aug. 31 but will remain on the board, News Corp. said.
"I am particularly saddened by my son's decision and thank him for his terrific contribution to the company," Rupert Murdoch said in a statement issued by the company.
Lachlan Murdoch's resignation makes his 32-year-old brother James Murdoch, currently CEO of UK satellite TV broadcaster BSkyB, the more likely heir apparent to succeed their father as the head of News Corp.
The company, which owns the Twentieth Century Fox film studio, Britain's Times newspaper, the Fox U.S. television network and the HarperCollins book publisher, is also BSkyB's largest shareholder, and Rupert Murdoch is BSkyB's chairman.
James was CEO of the media conglomerate's Asian satellite unit before being named BSkyB's top executive in 2003.
He faced fierce opposition from institutional shareholders, who claimed the CEO search was designed to ensure his ascension and who feared that BSkyB's formidable cash-flow would be used to fund News Corp. acquisitions.
A spokesman for BSkyB, when asked how long James Murdoch planned to stay on as CEO, declined to comment. BSkyB shares were up 1.3 percent to 532-1/2 pence at 1225 GMT.
Elisabeth Murdoch, the elder sister who is chairman and CEO of her own UK-based TV production company, Shine, also has been considered a possible successor to her father, though most speculation ended when she resigned from BSkyB in 2000.
Lachlan Murdoch joined News Corp. in Sydney in 1994 and served in a variety of capacities, including cleaning newspaper printing presses. He said in a brief statement he would be returning to Australia soon with his family.
"I would like especially to thank my father for all he has taught me in business and in life. It is now time for me to apply those lessons to the next phase of my career," he said.
The company said Lachlan, who was named media person of the year last month by the advertising community at their annual confab, would continue to advise News Corp. He joined the board in 1996.
News Corp.'s Australian shares fell 1 percent on Friday to A$22.96, bucking a 0.5 percent rise in the broader market.
Additional reporting by Adam Pasick and Jeffrey Goldfarb in London
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