James Murdoch faces threat to BSkyB role

MurdochLONDON -- James Murdoch's position at News Corp. and as chairman of U.K. paybox BSkyB is looking increasingly precarious. Murdoch last Friday survived an attempt by angry stockholders at a Los Angeles meeting of News Corp.'s investors to remove him as a director, when almost 35% of them voted against his re-election to the board. But there is certain to be renewed calls for Murdoch, who is News Corp.'s deputy COO, to stand down as chairman of BSkyB at the satcaster's annual general meeting, due to be held in London Nov. 29. If a majority of BSkyB's independent shareholders vote against him, this would put the independent non-executives on BSkyB's board "in a tricky position," according to the BBC's business editor Robert Peston. Peston quoted "a source close to the board," who thought that in those circumstances they would almost certainly feel obliged to ask Murdoch to ankle. On Nov. 10 Murdoch will face a second interrogation by MPs at Britain's House of Commons over the phone-hacking and police corruption scandal at the News of the World. Murdoch has always insisted that he was ignorant of the fact that intercepting voice messages was widespread at the U.K. tabloid when he authorised a payment of 700,000 ($1.1 million) to soccer official Gordon Taylor in April 2008 after Taylor's phone was hacked. But his version of events has been challenged by ex-News of the World editor Colin Myler and News International lawyer Tom Crone. Michael Wolff, who wrote a biography of Rupert Murdoch, "The Man Who Owns the News," told U.K. newspaper the Guardian that it was now inevitable that James Murdoch would leave. "James will probably go by himself, that's what everybody will be waiting for. "I wonder too if Lachlan (Murdoch) will step off the board. But could this drag on for another year? Yes." Wolff added that the size of the vote at Oct. 21's stockholder meeting against James had created "a very difficult family moment." Peston agreed that James Murdoch's credibility was heavily compromised. He said: "He wants to be seen as a talented business person in his own right, rather than the heir of one of the world's most powerful media tycoons. "James Murdoch's reputation has been hurt by having been in charge of News Corp.'s U.K. operations during the years when it failed to disclose the scale of phone hacking and wrongdoing at the News of the World." On Monday, James Murdoch did receive some words of support -- from ex-News International topper Les Hinton, Rupert Murdoch's right-hand man for around half a century. Hinton was asked by British MPs, via a video link from NY, if James Murdoch should take responsibility for what had occurred on his watch. "I see no reason why James Murdoch should resign," said Hinton, who himself resigned from News Corp. in July. Hinton again insisted to the pols that he was completely in the dark about acts of criminality at the News of the World when he was in charge of News International. Contact the Variety newsroom at news@variety.com