James Murdoch has resigned as chairman of BSkyB, the satellite broadcaster said in a statement.
He will nonetheless remain a "non-executive director." Current deputy chairman Nicholas Ferguson will take over his post.
"I am aware that my role as chairman could become a lightning rod for BSkyB and I believe that my resignation will help to ensure that there is no false conflation with events at a separate organization," Murdoch is quoted as saying.
The latest move follows his resignation in February as the chairman of News International, the branch of Rupert Murdoch's News Corporation that publishes a number of British newspapers.
The scandal also forced News Corp. to abandon its bid for full ownership of BSkyB, in which it holds a 39-percent share. BSkyB is currently under investigation by the UK's media regulator, Ofcom, to determine whether it is fit to hold a broadcasting license, the BBC reported.
James Murdoch has repeatedly denied knowing about illegal practices by News of the World journalists, though former employees have contradicted his account. He wrote in a letter to investigators last month that he "could have asked more questions," but maintains he did not deliberately "turn a blind eye."
According to the Guardian, his resignation from BSkyB is a pre-emptive move, designed to avoid the prospect of the News Corp. heir being forced to quit in disgrace if British lawmakers deliver a critical report.
Meanwhile veteran British broadcaster Jon Snow, anchor for Channel 4 News, said on Twitter that the move was a bad sign for the Murdoch family business:
No question that rsignation of JMurdoch frm BSkyB board indicates Murdoch empire is holed below the waterline a taking on water if not worse
— Jon Snow (@jonsnowC4) April 3, 2012
James Murdoch remains deputy chief operating officer of News Corp., with reponsibility for its pay-TV interests outside the US.
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