Murdoch Taps Movie Chief for No. 2 Spot

Media and entertainment mogul Rupert Murdoch on Tuesday boosted his movie chief, Peter Chernin, to the second-ranking spot in his global empire and gave him direct oversight of the company’s North American operations.

As his third-in-command, Murdoch named Chase Carey, chief executive of the Fox Television Group, who will share the News Corp. chief operating officer title with Chernin. Both executives were named News Corp. directors.

The promotion of two longtime loyalists was part of a sweeping management change brought about by Murdoch’s desire to reduce the number of operations he personally oversees.

Chernin was named president and chief operating officer of News Corp. as well as chairman and chief executive of the Fox Group, which includes all of the company’s North American operations such as the 20th Century Fox studio, the Fox television network, HarperCollins publishing and the New York Post.

“I just felt I needed more help,” Murdoch said in an interview. “We are getting busier and busier, and more global. I have too many people reporting to me.”

Murdoch said Chernin, 45, will oversee the creative side and Carey, 42, the business end, including getting more involved in global satellite TV operations.

Carey will formally report to Chernin, a change from their status as co-equals. Chernin, who worked in Fox’s TV operation before becoming studio chief, is expected to take a bigger role in Fox’s network, which faltered as it tried to expand beyond its niche as an edgy programmer for young audiences.

Although some interpreted the announcement as a setback for Carey, Murdoch said, “There is no bureaucratic pecking order.”

Chernin’s vault from chairman of 20th Century Fox to No. 2 executive in one of the world’s most powerful media companies is a quantum leap by Hollywood standards. In an interview, he said daily studio operations will be run by studio President Bill Mechanic along with Senior Executive Vice President Tom Sherak.

Murdoch said: “Peter will stay pretty closely involved, but I would say we’re not ready to make any announcement about that yet. You can’t assume anything,” he said, adding, “I don’t want to sound like I’m saying no to Bill.”

There was widespread speculation late Tuesday that Fox will make changes soon among high-level studio production managers.

Chernin’s position is an expanded version of the job once held by Barry Diller. Though the New York Post falls under Chernin’s umbrella, Murdoch is likely to oversee the Post personally.

The high point of Chernin’s four-year tenure as studio chief was the hit “Independence Day,” which could gross $800 million worldwide.

Murdoch reiterated a long-stated plan for his children to take over the company, although he added: “They have to prove themselves. They’re still in their 20s.”

Murdoch’s son Lachlan, who was elected to News Corp.’s board in Tuesday’s announcement, and daughter Elisabeth are most active.

“I’m going to live forever, so it’s a moot point,” said Murdoch, 65.