Murdoch’s Youngest Son Named to Head Asian TV Unit

News Corp. said it named James Murdoch, the youngest son of chairman Rupert Murdoch, as chairman and chief executive of its Satellite Television Asian Region Ltd. unit.

Murdoch, 27, had been interim co-chairman of Star, which broadcasts to an area containing about half the world’s population. He will be based in Hong Kong and replaces Gareth Chang, 55, a former aerospace executive who resigned in February after 18 months at Star.

Star’s appointment of James Murdoch probably will heighten speculation about which Murdoch heir will run the company after the patriarch’s retirement.

James’ brother, Lachlan, 28, who runs the company’s Australian operations, has been widely considered the heir apparent since he was designated several years ago as first among equals. But some sources close to the company said that many people see James as the smartest and that his star is on the rise.

Sources say sister Elisabeth, whose relationship with her father is strained, is out of the running. British Sky Broadcasting Group, Europe’s No. 2 pay-TV company, which is 40% owned by News Corp., recently announced that Elisabeth would quit this month to start a company specializing in TV, film and new-media content.

News Corp. also promoted Bruce Churchill to president and chief operating officer of Star. Churchill had been deputy chief executive of the unit since April 1996.

News Corp., the world’s fourth-biggest media company, said it will include Star in Platform Co., a unit that will include its stakes in other satellite broadcasters, including BSkyB.

News Corp. bought Star from Hong Kong businessman Richard Li and his father, billionaire Li Ka-shing, for $871.6 million in two stages in 1993 and 1995. Star has been unprofitable but expects to make a profit from its core broadcasting business in 12 months. It now reaches about 300 million viewers in 53 Asian countries.

Star is negotiating with Cable & Wireless HKT Ltd., Hong Kong’s biggest telecommunication company, to distribute its content over HKT’s Internet broadband network. Richard Li is taking over HKT through Pacific CenturyCyberWorks Ltd., Asia’s No. 2 Internet company. Churchill said Monday that Star may not proceed with the venture because the cost of running some of the businesses is too high.

James Murdoch’s appointment was reported Tuesday in the electronic edition of Financial Times. The newspaper also said Star would sell shares to the public, valuing itself at $8 billion to $15 billion. People familiar with the appointment weren’t aware of any separate Star share sale.

In addition to his job at Star, James Murdoch is an executive vice president of News Corp. and oversees the company’s music division, including Rawkus Entertainment, a record label he founded in August 1995 after leaving Harvard University without completing his degree. He has also been involved in overseeing News Corp.’s investments on the Internet.

Also, he ran News Corp’s U.S.-based interactive publishing unit, News Digital Media, from November 1997, when it was set up, until September 1999. News Corp. named him deputy publisher of the New York Post in 1998.

News Corp. shares closed at $45.56, down $1.63 on the New York Stock Exchange.