Did James Murdoch jump from BskyB before he was pushed?

Ofcom indicated that it was considering any misconduct that occurred under Murdoch's leadership of the family's newspaper business as a factor in determining whether he and BSkyB were "fit and proper."  With Ofcom deciding in January to ramp up its investigation into Murdoch according to a Financial Times report, BSkyB saw the specter of having its broadcasting license in Britain withdrawn – a potentially devastating event for the broadcaster and its chairman.

With the ongoing investigations and the decreasing popularity of the Murdochs among BSkyB shareholders, the younger Murdoch ran the risk of a revolt among the board of directors, particularly as it is set to change soon. 

Katherine Rushton of the Daily Telegraph notes that a trio of new independent directors will have to be named, which could shift the balance of corporate power from the pro-Murdoch directors to the anti-Murdoch crowd.  Although a Sky spokesman said recently that the board unanimously supported James, Ms. Rushton notes that "a new line-up of non-executives means the board can withdraw its unanimous backing without risking an embarrassing volte-face."  Thus, she writes, James' resignation is the Murdoch family's way "of managing a dignity-preserving exit from BSkyB."

Some note that it wasn't simply reputation that led James to step down, but also preservation of his family's wealth.  Professor Ajay Bhalla of London's Cass Business School told the Guardian that James voluntarily departed "to preserve the Murdoch family's wealth and reputation."  While the Murdochs have long been active managers of the family business, Professor Bhalla argues that James' resignation is a sign of "a shift towards the Murdoch family taking a back seat in managing the businesses" and acting to "maximize its wealth" instead of its corporate power.  By leaving now, Murdoch prevents further loss to the family business, Bhalla says.

Ultimately, with all these swords of Damocles hanging over his head, it seems most likely that Murdoch "is jumping, rather than being pushed," as the BBC's Robert Peston writes.  "His resignation may lower the stakes for him when he appears before the [Parliamentary investigation] for a full day of interrogation scheduled for later this month."

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