James Murdoch, the younger son of News Corp. chief executive Rupert Murdoch, has long been considered the heir apparent to the global media and entertainment empire.
But the scandals plaguing News International, News Corp.'s British newspaper unit, may have thrown into doubt family plans for the 39-year-old James Murdoch to eventually take over from his 80-year-old father.
News Corp. announced Wednesday that James Murdoch has stepped down as executive chairman of troubled News International and would focus on the company's international television operations.
"James will continue to assume a variety of essential corporate leadership mandates, with particular focus on important pay-TV businesses and broader international operations," Rupert Murdoch said.
James Murdoch is the fourth of the Australian-born Rupert Murdoch's sixth children.
Rupert Murdoch has a daughter from his first marriage, two sons -- Lachlan and James -- and a daughter from his second marriage and two daughters from his third marriage.
In his youth, James was considered a rebel with his earrings, baggy pants and platinum blond hair.
Today the Harvard-educated executive sports glasses, sharp suits and short hair and is married to an American with whom he has two children.
James's elder brother, Lachlan, 40, was once considered the successor to his father, who despite persistent speculation has shown no signs of stepping aside anytime soon.
But Lachlan gave up his senior executive positions in News Corp. in 2005 amid disagreements with other company executives and moved to Australia.
James Murdoch's troubles at News International and a surprise appearance by Lachlan at his father's side have renewed talk that the elder brother may once again be in the running to take over the family business.
Lachlan, rather than James, accompanied Rupert Murdoch during a visit to the newsroom of The Sun, another News International paper, this month, during which it was announced that the Sun would be launching a Sunday edition.
News Corp. shut down its British Sunday tabloid, the 168-year-old News of the World, in July of last year amid revelations of hacking into the phones of a murdered teenager and relatives of dead British soldiers.
James Murdoch appeared twice before a British parliamentary committee last year as part of its investigations into the phone hacking, and both times he denied knowing the practice was widespread.
News Corp. has settled dozens of claims brought by victims of phone hacking by the News of the World, including a £600,000 ($952,000, 710,000-euro) deal with singer Charlotte Church agreed on Monday.
The Sun has also been embroiled in a scandal of its own with a top police officer telling a public inquiry into press standards on Monday that reporters at the paper had made cash payments to a "network of corrupted officials."
Deputy Assistant Commissioner Sue Akers told the inquiry that The Sun had a "culture" of paying police, the military, health workers, government and prison staff.
James Murdoch joined News Corp. in 1996, working on digital media ventures and corporate development projects as an executive vice president based in New York.
He took over News Corp.'s Asian television group STAR in 2000, served as chief executive of British broadcaster BSkyB from 2003 to 2007 and has headed News International since 2007.
In March of last year, James Murdoch was named News Corp.'s deputy chief operating officer, moving from London to New York to report to News Corp. deputy chairman, president and chief operating officer Chase Carey.
