News Corp. Chairman Rupert Murdoch reached out to tap new leadership for his global media empire -- by bringing back one of his most trusted former executives.
With Chase Carey set to assume the No. 2 job at News Corp., Murdoch on Wednesday acted swiftly to calm investor fears about a management void at the top of the company with the departure of President and Chief Operating Officer Peter Chernin. Carey will assume the titles of deputy chairman, president and chief operating officer July 1, the day after Chernin steps down.
At the same time, Carey's appointment leaves a leadership gap at DirecTV, the El Segundo-based satellite broadcaster that he has run since 2003. Carey demonstrated operational acumen as chief executive of DirecTV, where he is credited with expanding the reach and improving the profitability of the satellite broadcaster.
In rejoining News Corp., the 55-year-old executive will enjoy a rapport with Murdoch and draw on a deep knowledge of News Corp., where he held a variety of senior positions.
"Chase has been an important advisor and a close friend to me for several decades," Murdoch said Wednesday in an e-mail to employees. "I know that his leadership, strategic capabilities and more than 15 years of experience at our company will prove invaluable as we face the challenges and opportunities before us."
DirecTV announced Wednesday that it had accepted Carey's resignation, even though he is under contract through December 2010.
The board installed Larry D. Hunter, the company's general counsel since 2002, as its interim head until a successor is named.
The satellite broadcaster was rocked earlier in the week when it was leaked that the company's chief executive was in negotiations to leave to become Murdoch's top lieutenant.
During Carey's tenure, DirecTV's subscriber base grew to 18 million from 12 million in the United States. The company went from a break-even business to one that generated free cash flow of $1.7 billion last year. Earlier this year, it renegotiated its NFL rights deal. Carey also quarterbacked the company's successful strategy to promote high-definition channels, which gave it an edge against its competitors because it offered more HD channels.
"The board wishes Chase the very best in his new position," said John Malone, chairman of DirecTV Group. "While we will certainly miss Chase, we are confident in DirecTV's future with a seasoned executive team in place."
