Tue Apr 21, 2015 2:15am EDT
Saudi Arabia's Prince Alwaleed bin Talal is in no doubt that James Murdoch is ready to take a much bigger role at Twenty-First Century Fox, by far the largest part of the media empire that James' father Rupert Murdoch built.
"James is a giant!" said Alwaleed, a Murdoch family ally and one of Fox’s top shareholders with a 6.6 percent voting stake, in an interview. In particular, Alwaleed points to what he says is James' ability to grasp the digital world and understand how it is transforming the media landscape, adding: "I really love him!"
The billionaire prince's seal of approval - and increasing acceptance of James by other shareholders - may be laying the ground for Fox to give the 42-year-old day-to-day control of the company sooner rather than later.
One person familiar with the family's thinking said James, who is currently co-chief operating officer with Chase Carey, could take over fully from Carey - who also holds the title of president - as early as the end of this year.
The source cautioned that the change hasn't been formalized and could be subject to delay. It is also unclear what title James would take or whether there is any possibility that Rupert Murdoch, 84, would relinquish the Fox CEO position to him anytime soon.
Carey's contract is set to expire on June 30, 2016, but he can leave the company as early as the end of this year with six months notice.
Fox declined to comment. James Murdoch declined to be interviewed for this article.
What is clear is that some key investors seem to be warming to the idea that James has the chops to run Fox. That was not always the case.
In interviews, some top investors who know James, and other people familiar with the company, describe him as curious and a risk taker like his father. But they also cite two big differences that they like: James is less sentimental about certain assets than his dad and he is more enthusiastic about courting shareholders.
In 2013, James and his older brother Lachlan, 43, were elected as directors of Fox – but only on the strength of votes cast by the family. Assuming the Murdoch family and Alwaleed voted for the two sons (the prince has previously said he tends to vote with the Murdochs), it means that 71 percent of the rest of the shareholders voting opposed James – and 90 percent cast their votes against Lachlan.
In contrast, after James was made co-COO and Lachlan co-chairman of Fox last year, only 24 percent of the independent stakeholders voting opposed both their board nominations if the same voting assumptions for the family and Alwaleed are correct. Fox declined to comment on those assumptions.
James "really works hard just like his father," said Saad Mohseni, chairman and CEO of the Afghan media company Moby Group, in which Fox holds a stake. "He doesn't get the benefit of the doubt. For him, every step of the way he has to prove himself."
If James gets Carey's role he will be running the day-to-day operations of a sprawling media behemoth with a market value of close to $73 billion. It owns cable assets, broadcast networks and movie studios, including Twentieth Century Fox movie studio, Fox News and Star India.
The Murdochs own 39 percent of voting shares in Fox and News Corp, the company that operates newspapers like The Wall Street Journal and book publisher HarperCollins, through a family trust. Fox split from News Corp in 2013.
The prospect of a Fox completely run by the Murdochs does still concern some investors.
Many shareholders say they have great respect for Carey, 61, a long-time Murdoch lieutenant who has worked in the role since 2009. The thinking: Carey is not only a good operator but he also keeps the family in check - especially when acquisitions are concerned.
"We are very happy with how things are now," said one top Fox shareholder, adding that having the Murdochs running the show in the top three positions without having anyone to provide an alternative voice wasn't a comfortable prospect.