James Murdoch Steps Down As Chairman Of BSkyB - But Why?

Couldn't Hack It? Why Did Murdoch Step Down
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James Murdoch's decision to step down as the chairman of BSkyB will be seen as yet another sign that the family's grip on UK media is crumbling.

But why did he really walk? Some commentators say there could be more to this than simply 'Murdoch the fall guy'?

Media observers, such as Steven Barnett, a professor of media at Westminster University said Murdoch "had to step down for the sake of the company."

"I think it was inevitable. As soon as Ofcom said they were stepping up their inquiry into the fit and proper person test [for BSkyB to hold a broadcast licence]. I'm surprised it has taken as long as it has.

"At some point it was going to affect the share price - really it's about getting the rebuttal in first," he told The Huffington Post UK.

Professor Barnett added that he may have stepped down in anticipation of a potentially "critical" report into the phone hacking scandal from parliament's culture, media and sport parliamentary committee.

Labour MP Chris Bryant, meanwhile accused Murdoch of being "frightened" of the report adding it was "right that he should go." Culture committee members, however, have said their report has not yet been finalised.

"We haven't determined our report yet so if that was the sole reason for him standing down then that will have been premature. I don't know why he's stepped down now," Philip Davies MP told HuffPost UK.

Fellow committee member Therese Coffey MP said she was "not surprised" by the news: "James Murdoch is trying to step out of the public eye as the chairman of a company that is under considerable scrutiny."

Despite Murdoch stepping down from the role, he remains on the board, and Lib Dem MP Don Foster has said questions remain about whether News Corp's bid for BSkyB.

“Whether or not News Corp qualifies as a ‘fit and proper person’ remains to be seen, and there are still unanswered questions on James Murdoch’s knowledge of phone hacking," he said.

“It is essential that this resignation does not act as a barrier to finding out the truth.”

Questions also remain abut what this means for the Murdoch media empire, with Professor Barnett saying it was "unclear" if there would be a Murdoch in charge of News Corporation.

"It's pretty clear now that James Murdoch as a successor to his father is an idea that is dead in the water.

"There are two questions. First of all is there anyone of the other two Murdoch siblings who are in a position to take over and if not where does it go after Rupert either pops his clogs or stands down. What we might be seeing is the beginning of the end of the family empire. Ten years from now I don't think it is at all clear that there will be a Murdoch in charge."

Labour leader Ed Miliband said on a visit to Toyota in Derbyshire, that standing down was the "right thing for him to do"

He said: "What now needs to happen is that the police investigation takes its course and gets to the bottom of exactly what happened."

In the wake of Murdoch stepping down, an Ofcom spokesperson said nothing had changed: "We continue to gather evidence which may assist us in assessing whether BSkyB is and remains fit and proper to continue to hold its broadcast licences. As we have previously explained, the licensee, as a corporate body, will include controlling directors and shareholders.”

Martin Moore, founder of Hacked Off, told the Huffington Post UK: "It was the right thing for James Murdoch to go given he was expecting the judgement of three different inquiries [from Leveson, Ofcom, and parliament's culture committee]. I think it looks like a pre-emptive move given that in the very best case scenario, one of them is going to question his competence if not worse."

"Part of the key to this is the Ofcom fit and proper test of BSkyB because they specifically mentioned they were looking a the behaviour of board members of BSkyB."