http://www.ft.com/cms/s/0/c870200a-01ed-11de-8199-000077b07658.html?nclick_check=1
Murdoch to take control at Fox By Andrew Edgecliffe-Johnson in New York and Matthew Garrahan in Los Angeles Published: February 23 2009 21:15 | Last updated: February 24 2009 02:23 Peter Chernin, president and chief operating officer of News Corp, is leaving after failing to agree a new contract with Rupert Murdoch, who will step in and take direct control of the Fox studio and broadcast businesses that his right-hand man has run for 12 years. Many company watchers had expected the departure of one of the most admired executives in Hollywood to trigger a move to head office by James Murdoch, Mr Murdoch’s younger son. Although James remains the favourite to succeed the 77-year-old media mogul in time, he has chosen to stay in charge of its European and Asian operations, which range from The Sun newspaper to Star television in India and which have given him his own highly prized power base. Mr Chernin, 57, who had been in negotiations for months on a contract due to run out on June 30, will leave with one of the richest termination packages in Hollywood history. Knowing that he had no chance of succeeding Mr Murdoch in the company, Mr Chernin insisted under the terms of his 2004 contract that News Corp agree a six-year film and television production agreement with him should he leave. The contract obliges News Corp to buy at least two films a year from Mr Chernin, who said last night he would set up “a Fox-based production company” this year, on terms “at least as favourable” as any other production deal signed by the company before August 2004. Other clauses in the contract could be worth tens of millions of dollars in deferred compensation, pension credits and other benefits such as country club membership. Mr Chernin, who earned $28.8m last year, leaves after a quarter that saw no breakthrough hit for the studio but continued strength in Fox’s television business. Fox Searchlight, which he launched 15 years ago, achieved Oscar success for Slumdog Millionaire. Although Fox’s Los Angeles-based businesses will now report directly to Mr Murdoch, he emphasised the “strong and seasoned group of leaders” left behind by Mr Chernin, whose contributions he lauded as “immeasurable”. “I will miss him,” Mr Murdoch said of Mr Chernin, who in turn praised Mr Murdoch as an unparalleled leader, a bold entrepreneur and “great fun”. Mr Chernin’s departure comes at a challenging time for News Corp, which this month forecast a worse-than-expected 30 per cent drop in operating income this year as it unveiled a $6.4bn quarterly loss. ------------------------------------ -- INFORMATION OVERLOAD? Get all ZESTMedia mails sent out in a span of 24 hours in a single mail. Subscribe to the daily digest version by sending a blank mail to [email protected], OR, if you have a Yahoo! Id, change your settings at http://groups.yahoo.com/group/ZESTMedia/join/ PARTICIPATE Share media news, discuss journalism issues and network with media professionals across South Asia on this mailing list. Just write to [email protected] TELL FRIENDS TO SIGN UP If you got this mail as a forward, subscribe to ZESTMedia by sending a blank mail to [email protected] OR, if you have a Yahoo! ID, by visiting http://groups.yahoo.com/group/ZESTMedia/join/ Also have a look at our sister list, ZESTCaste: http://groups.yahoo.com/group/ZESTCaste/Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/ZESTMedia/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/ZESTMedia/join (Yahoo! ID required) <*> To change settings via email: mailto:[email protected] mailto:[email protected] <*> To unsubscribe from this group, send an email to: [email protected] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
