Murdoch Sets Up Sons To Take Over FOX Media

Rupert Murdoch, Lachlan, James

Rupert Murdoch has returned eldest son Lachlan to the leadership of his media empire and promoted younger son James, paving the way for the 83-year-old tycoon to pass the reins to the family's next generation, according to Reuters.

Lachlan, 42, will become non-executive co-chairman of both entertainment company 21st Century Fox and publishing operation News Corp, sharing both roles with his father. He rejoins the company after quitting as deputy chief operating officer nearly 10 years ago amid friction with other News Corp executives.

James, 41, will become Fox's co-chief operating officer alongside longtime Murdoch stalwart Chase Carey, the latest step in the younger son's comeback after he was forced to relinquish some roles during a phone hacking scandal in Britain.

James will have responsibility for Fox Networks Group, the U.S. broadcast and cable channels business, and strategic oversight of Fox's businesses in Europe, Asia and the Middle East.

Each son has at various times been seen as heir apparent, and it is unclear how well they will work together when Murdoch finally hands over the companies.

The Murdoch family controls both Fox and News Corp through a trust that has a 38 percent ownership stake of Class B shares with voting rights.

Read More Now