Peter Chernin, president and chief operating officer of News Corp, is leaving after failing to agree a new contract with Rupert Murdoch, who will step in and take direct control of the Fox studio and broadcast businesses that his right-hand man has run for 12 years.

Many company watchers had expected the departure of one of the most admired executives in Hollywood to trigger a move to head office by James Murdoch, Mr Murdoch’s younger son.