Shakeup at News Corp.

Rupert Murdoch names two Britain-based lieutenants to oversee Dow Jones, while son James looks increasingly like News Corp.'s future chief.

Two of Rupert Murdoch's senior hands in the viciously competitive British newspaper business will assume the top posts at Dow Jones and Company.

According to people familiar with Murdoch's plans, Les Hinton, who oversees News International, Murdoch's British newspaper operation, will be named chief executive of Dow Jones in the wake of the resignation Thursday of Richard Zannino, who was CEO for two years.

Hinton, who has previously worked for Murdoch both in Australia and the United States, is possibly the media baron's longest-serving lieutenant.

He's been with Rupert every step of the way, said one News Corp. insider.

In addition to putting Hinton in charge of Dow Jones after Murdoch's $5-billion acquisition closes Dec. 14, Robert Thomson, the editor-in-chief of London's Times newspaper, is expected to replace Gordon Crovitz as publisher of the Wall Street Journal.

Zannino had an eventful two year run as Dow Jones' chief executive, and was the first person at the company the billionaire media baron told of his intention to bid for the company - over a breakfast in Murdoch's midtown office back in March. Zannino was put in the awkward position of not taking a public position on the unsolicited offer for weeks because the company was controlled by a family, the Bancrofts, who initially seemed to rebuff News Corp.
Dow Jones CEO out the door

Rupert and I have been discussing since September my moving on from the company after the closing, Zannino said. I will leave Dow Jones knowing the best is yet to come for readers, customers and employees under Rupert's leadership.

Under a change-in-control provision that was enhanced after Murdoch's bid, Zannino could be entitled to a payout worth as much as $25 million. Crovitz would be entitled to around $8 million.

I understand Rich's decision to seek new challenges, Murdoch said in a statement. During nearly two years as CEO, he proved himself to be an effective leader who revitalized Dow Jones during a time of great change in the industry.

Adding to the shakeup at News Corp., James Murdoch, Rupert's son, is expected to be elevated from his post as CEO of BSkyB in London to oversee all of News Corp.'s European and Asian businesses. Such a move would clearly put James in place among Murdoch's six children from three marriages to eventually take over running News Corp. from their father, who is 76.

James, who is 34, took the CEO job at BSkyB four years ago and has been aggressively expanding the business, which is controlled by News Corp., into new areas such as telephony and Internet connections. As chairman, James will succeed Rupert, while the company's current chief financial officer, Jeremy Darroch, will become CEO. Previously, James has overseen News Corp.'s U.S. Internet investments and its StarTV business in Asia.

Source - CNNMoney