James Murdoch faces a final test before stepping into Rupert’s shoes: Bartholomeusz

Now that he is an octogenarian there is a sense of urgency evident in Rupert Murdoch’s attempts to secure a dynasty. The appointment of James Murdoch as deputy chief operating officer of News Corporation and his relocation from London to New York was a necessary pre-requisite if the family’s control of News was to be shored up.

Despite the return to the fold of the highly-regarded Elisabeth Murdoch after News acquires her Shine Group for about $670 million, James has been Rupert’s preferred successor for some time.

The timing of the move, however, is slightly awkward, with News apparently on the verge of succeeding in gaining a UK government clearance for its controversial $13 billion bid for BSkyB, a bid that if successful would confirm News as the largest pay TV operator in the globe. That would be a massive tick for James’ credibility as an executive.

While James will remain in charge of News’ international operations as executive chairman of News International, the transfer to the US is clearly driven by Rupert’s succession planning and the need to give James the requisite experience to ensure that the market will accept him, whenever the moment arises, as Rupert’s successor.

The big gap in James’ CV is the absence of any high level experience in News’ core US operations. Without some record of success in the US there could well be resistance from non-family shareholders – and News Corp senior management – to a future attempt to impose him on the business as chief executive.

The elevation to the deputy chief operating office role, reporting to the current number two, Chase Carey and working alongside Rupert, gives him the opportunity to demonstrate his bona fides for that role.

There is, however, some risk in the move. The deputy COO title was held by James’ older brother Lachlan between about 2000 and 2005. Lachlan, while remaining a director of News, resigned abruptly in 2005 after his father backed the powerful head of Fox TV, Roger Ailes, in a dispute between the two.

The US business is more political than News’ other operations (not that they aren’t political) and peopled by highly aggressive and ambitious executives. Rupert has been able to maintain control of them through force of personality, position and his extraordinary history. His anointed successor may not find it as easy to intrude on the patches of the more powerful of the News US executives.

Despite the risks, the move is one that Rupert had to make if he were to not just secure the succession but give James’ the experiences he would need to eventually manage News.

There is a widespread expectation that, once Rupert finally relinquishes his iron grip on News’ affairs, the sprawling media empire he has built over nearly six decades will be reshaped to focus more tightly on its core film and television production and distribution businesses, which are centred in the US.

If James is to smoothly succeed his father, it will be essential that he not only gets a close-up exposure to those businesses but a real rather that titular role in directing them. Given Lachlan’s experience, that could make for some interesting and potentially explosive moments.

This article first appeared on Business Spectator.