Peter Chernin to quit News Corporation

25 February 2009

Speculation is rife about the future management of News Corp, the Rupert Murdoch-controlled news empire, after it was announced that  his right-hand man for the last 12 years, Peter Chernin, president and chief executive officer of News Corp, will be leaving the company once his contract expires in June this year.

Chernin's deparure is expected to create something of a power vacuum at one of the world's largest media empires as he has been holding these posts since 1996. He is also chief executive officer of the Fox Group, including Twentieth Century Fox, whose film Slumdog Millionaire swept the Oscars this year.

Chernin, president and chief operating officer at News Corp, will stand down at the end of June with a lucrative pay-off to launch a film and television production company in tandem with News Corp's Fox arm.

"There will be cost savings as a result," Murdoch wrote in the e-mail. "But the more important aim is to be leaner so that we can better leverage our collective talent and expertise." Chernin's departure is likely to be followed suit by several top executives of the company.

After his departure, ''several Los Angeles-based Fox businesses will report directly to Murdoch," News Corp said in a statement. In an e-mail to employees, Murdoch portrayed Chernin's exit as an opportunity to streamline the company's operations. Like all media companies, News Corp's advertising-dependent businesses have been hit hard by the recession.

Details of his departure have formally been announced, following earlier speculation, with Murdoch praising Chernin as a "valued colleague and trusted friend."