James Murdoch's resignation as executive chairman of News International is the latest chapter in damage control stemming from phone hacking at The News of The World.
The decision also takes James Murdoch another step away from succeeding his father Rupert as chairman and chief executive of News Corporation.
But the news could be worse the James Murdoch.
News Corporation shareholders are increasingly angry about the damage the scandal is doing to the company's reputation and share price.
London's Guardian newspaper has reported that some are already drafting resolutions for this year's annual general meeting to remove James Murdoch from the News Corporation board.
The moves add to speculation that when Rupert Murdoch finally retires or dies, his successor is unlikely to be a Murdoch but News Corporation's president and chief operating officer, Chase Caret.
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