The changes at Dow Jones are only part of a broader shakeup at News Corp., Rupert Murdoch's global media empire.

Murdoch's son James has been promoted to run the company's operations in Europe and Asia, a move that all but anoints him the heir apparent.

James Murdoch, 34, will now oversee properties from the satellite broadcaster Star TV in Hong Kong to the Sun tabloid in Britain. He is set to leave his current position as chief executive officer of British Sky Broadcasting, the satellite-TV company that is controlled by News Corp. He will also rejoin the board of News Corp., on which he served from 2000-03.

"James is a talented and proven executive with a rare blend of international perspective and deep, hands-on experience in improving operational results. He has transformed Sky, which is now not only Europe's most valuable television company, but also the fastest growing challenger in the much larger U.K. marketplace for entertainment, broadband and telephony," Rupert Murdoch, 76, said in a statement. "This is the right time to align our operations in Europe and Asia under new, structured group leadership."

Lachlan Murdoch, Rupert's eldest son, had widely been considered the heir apparent. But in July 2005, Lachlan, who had overseen the New York Post, abruptly quit as deputy C.E.O. amid reports of turmoil within the family. (The rift has since apparently been mended.)

James, who dropped out of Harvard to start a hip-hop record label, has been seen as similar to his father in his intelligence and his rebellious streak. His appointment to run Star TV was greeted with charges of nepotism. But he steered the company back into profitability, and his record at BSkyB was also largely successful.

"This is the next, critical step in a very logical transition," Larry Haverty of Gamco Investors told Bloomberg News. "Rupert gave him a very tough assignment and he passed it with flying colors."

New Corp. has also announced that Les Hinton, executive chairman of News International, will become chief executive of Dow Jones after Richard Zannino steps down. News Corp. will take control of Dow Jones, which owns the Wall Street Journal, next week. Robert Thomson, the editor of the London Times, will become publisher of the Journal, according to reports.


Also on Portfolio.com
CNBC: Fox Business? What Fox Business?
Rescue Memo: What Murdoch Must Do With Dow Jones
Market Movers: The Future of the WSJ