News Corp. President and Chief Operating Officer Peter Chernin plans to leave the company when his contract expires this summer, costing the media giant a key lieutenant at a tumultuous time. Speculation has swirled for months about the future of Mr. Chernin, 57 years old, who has run News Corp.'s Fox television and film production division for 12 years. The division is one of the largest within News Corp., which also owns The Wall Street Journal.
A direct successor was not immediately named. Instead, the heads of the businesses overseen by Mr. Chernin will report to News Corp. Chief Executive Rupert Murdoch, the company confirmed Monday. Mr. Murdoch said in a statement that he will work closely with Mr. Chernin until he leaves News Corp. June 30.
"Peter's contributions to the company over the past two decades have been immeasurable," Mr. Murdoch said in the statement. "We are fortunate to have such a strong and seasoned group of leaders at our Fox companies, and we are confident that our success will continue."
Mr. Chernin's departure comes at a difficult time for News Corp., whose stock price has dropped by more than two-thirds in the past year, including a decline of 26 cents, or 4.3%, Monday to $5.78 a share.
"Investor confidence is already shaken in the media sector," said Todd Lowenstein, a Highmark Capital Management portfolio manager who oversees a $2.5 million News Corp. investment.
Though Mr. Murdoch, 77, has said it's the role of News Corp.'s board to pick his successor, he has made clear his preference to have one of his children ascend to the top job, making it unlikely that Mr. Chernin would ever become CEO.
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