James Murdoch, the deputy chief operating officer of Twenty-First Century Fox (ASX: FOX) has sold approximately a fifth of his holding of Class A shares in the company.
A filing with the United States Securities and Exchange Commission showed the media mogul selling 455,000 Class A shares at an average price of $US32.97. The company is dual-listed in the United States and Australia with only Class B shares retaining voting rights. The power-savvy Murdoch family still controls approximately 40% of the Class B voting shares.
In November the film and TV business reported a 44% fall in first-quarter profit, which was partly impacted by startup costs for two new cable-television channels. James was once widely believed to be the anointed heir to his father's media empire, but his reputation took a battering after revelations about his time as head of Newscorp (ASX: NWS) across Europe and Asia. Some of the group's British newspapers becoming engulfed in an illegal phone tapping scandal that has yet to run its course. James Murdoch has since beaten a strategic retreat from those areas of responsibility.
Foolish takeaway
Investors should not worry about the strategic dealings of James Murdoch, as the stake sold was relatively small anyway. The shares have rallied hard since listing earlier this year and the long-term growth prospects remain solid. The business has plenty of opportunity for further growth and its quality brands mean it remains a solid opportunity.
