Chase Carey: Why he’s Rupert Murdoch’s new second in command

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I can’t remember what movies win Oscars from one year to the next, but when someone makes a dead-on prediction about a big media hire, it somehow sticks in all that fuzzy gray matter between my ears. On Feb. 24, the night that Peter Chernin announced he was leaving his longtime post as Rupert Murdoch’s second in command at News Corp., I was having dinner with a wise old industry hand who is especially well schooled in the often byzantine inner workings of Murdoch’s empire. At one point, our conversation turned to the news of the day, first for some pondering of what Chernin might do next, but then to the even more tantalizing question: Who would Murdoch hire in his place?

If you remember, Murdoch initially said that he wouldn’t replace Chernin at all, relying on a troika of longtime News Corp. executives. But my source -- let’s call him the Wise Man -- saw it differently. ‘You watch,’ he said. ‘There’s only one person Rupert would pick to replace Chernin -- Chase Carey.’ I was skeptical. After all, Carey (who has the best mustache since Rollie Fingers) had a job as the CEO of DirecTV. ‘That won’t matter,’ the Wise Man said. ‘Rupert needs him. He’ll make a deal. It’ll happen. Just wait and see.’

Of course, more than three months later, Murdoch has indeed made the deal, bringing in Carey to assume Chernin’s old No. 2 position, appointing him as News Corp’s deputy chairman, president and chief operating officer. It completes a circle for Carey, who spent 15 years as a top executive at News Corp. before losing a battle with Chernin for the No. 2 job, prompting his departure in 2002.

So I called up the Wise Man and asked him why he was so sure he knew what was going to happen. ‘After Barry Diller left Fox, Rupert almost completely relied on two people -- Chase Carey and Peter Chernin,’ he explains. ‘Chernin was the creative guy, Carey was the business mind. They were equals -- one was Rupert’s right arm, one was his left. But largely because of a clamor from Wall Street, Rupert had to choose a successor and he picked Chernin. Once he lost out, Carey knew he had to leave. You can’t not get that job and stay at the company.’

The Wise Man says that even after Carey headed back East and became the chief executive at Direct TV, he remained one of Murdoch’s key confidants, especially after News Corp. bought a controlling interest in the company. About 18 months ago, News Corp. unloaded DirecTV to John Malone, with Carey staying on to run the company. (‘Since John Malone makes Barry Diller look like Mary Poppins, if Carey can work for Malone, then he can work for anyone,’ the Wise Man noted.) But Murdoch kept in touch and when Chernin left, it was Carey whom Murdoch viewed as the most obvious replacement.

As the Wise Man puts it: ‘Chase is the perfect general. Once a decision is made, no one executes it as well as he does. He’s a great executive -- very fair, straight shooter, unflappable, always good at listening, but not afraid to take action. He has no agenda, but more importantly, he’s a lot like Chernin in this way -- if you asked me who Chase liked or didn’t like, I wouldn’t be able to tell you, because he never lets you know. The only thing you really know about Chase is that he’s Rupert’s guy. If Murdoch decided that his kids weren’t ready to run the show, then you knew he’d turn to Chase, because Rupert goes with the man he’s most comfortable with and no fits that bill better than Chase Carey.’

COMING NEXT: No one is perfect. What’s the worst deal Chase Carey ever made at News Corp.?