James Murdoch, heavily criticised in last week's Ofcom report following the phone hacking scandal in the UK , could soon be running run the flagship Fox TV channel in the US - news that has angered News Corp. shareholders, according to a report in the Guardian.
One dissident shareholder called the news a "slap in the face for shareholders, not to mention victims of the hacking scandal", the paper said.
James Murdoch, according to the the Financial Times, is set to take over the running of Fox Networks,including its national Fox channel, home to American Idol and The Simpsons, and cable businesses including FX.
James was head of News Corp's UK newspaper business as the hacking scandal broke. Ofcom said he "repeatedly fell short of the conduct to be expected of as a chief executive and chairman" and that his lack of action in was "difficult to comprehend and ill-judged".
But in a major victory for Rupert Murdoch, Ofcom ruled that BSkyB,( largest shareholder, News Corp) remains a fit and proper owner of broadcast licences.
News Corp declined to comment on the reports of James Murdoch's role at US operations.
Julie Tanner, director of socially responsible investing for New York-based Christian Brothers Investment Services, told the Guardian: "This move proves that Rupert Murdoch is running News Corp solely for the benefit of the Murdoch family."
Last year Tanner led a shareholder revolt that ended with the majority of independent shareholders voting against the re-election of James Murdoch, his brother Lachlan and most of the News Corp board. She has lodged a similar resolution ahead of this year's meeting.
"While we are disappointed – and frankly, somewhat amazed – by this move, I also hope it sheds light on the importance of voting for our resolution to appoint an Independent Chair at the News Corp AGM. This is a clear example of the need for improved corporate governance at the company," she said.
In August, the lobby group Citizens for Responsibility and Ethics in Washington (Crew) filed a complaint with America's broadcast regulator, the Federal Communications Commission, arguing that News Corp was unfit to run US broadcasting licenses.
Crew executive director Melanie Sloan said the possible elevation of James Murdoch would strengthen their case. "It seems to me that there is a lot more to come out about James Murdoch. There are plenty more questions that need answers," she said.