Sydney: Lachlan Murdoch has been appointed to the third most senior position in News Corp Ltd, the global media empire his 69-year-old father Rupert Murdoch has built.
"He is number three in the organization now," a News Corp official told Reuters, referring to the appointment of the 29-year-old as the company's deputy chief operating officer.
The appointment reinforced the perceptions in the market that the eldest son of the chairman and chief executive, who recently recovered from prostate cancer, would eventually hold the reins.
And the move was also interpreted as enabling Lachlan Murdoch to gain more management experience in the cross-platform operations of News Corp, particularly film and television.
But sections of the market were uncomfortable, with some investors concerned he may be too young and lack the experience to be tackling such a senior position in News Corp.
"I have heard from our desk that people are reacting very negatively to this," said a media analyst from an overseas investment bank who declined to be named.
Shares in News Corp continued to lose ground on Friday, dropping 99 cents or 4.18 percent to A$22.71 in early trade following a 7.24 percent slide in its American Depositary Receipts overnight.
Analysts said that the sharp declines in its share price in recent sessions were linked to concerns over the valuation of satellite grouping Sky Global Networks, which is due to be floated, and forward earnings downgrades.
On September 30, News Corp's film and television unit Fox Entertainment Group Inc said it would book a one-time, non-cash, pre-tax US$750 million charge in the 2001 first quarter due to changes in accounting procedures.
Murdoch senior's second son, James, has been given the job of heading the group's sprawling but loss-making Star TV satellite service while daughter Elisabeth quit British Sky Broadcasting earlier this year to set up her own media venture.
News Corp, of which the Murdoch family owns about 30 percent of the voting stock, publishes newspapers, books and magazines, runs cable, satellite and terrestial television and produces films and TV programs and is developing Internet businesses.
Lachlan would work closely with News Corp president and chief operating officer Peter Chernin and other senior executives to help oversee the company's global assets, said the company.
He would continue to run its U.S. print operations, including book publisher HarperCollins, and retain his position as chairman and chief executive of the Australian newspaper operations.
"Lachlan's energy, vision and intellect will be great assets to me and the entire company," second-in-command Chernin said in a statement.
Murdoch senior, whose third marriage was to 31-year-old Wendy Deng in June 1999, on New York's Hudson River aboard the white yacht The Morning Glory, has made his succession plans clear.
"If I went under a bus today, I'm sure Peter (Chernin) would be appointed chief executive officer," Murdoch told CNN's Moneyline in September 1999.
Two months earlier, he told Newsweek that both his sons had to prove themselves but Chernin was "very much senior to them".
"It would certainly be a matter for the board. I would think Peter would probably be CEO," he said.
