UPDATE: Lachlan Murdoch Named New Chairman Of Ten Network

Lachlan Murdoch, the eldest son of News Corp. (NWS) Chairman and Chief Executive Rupert Murdoch, has been appointed chairman of Australian television and outdoor advertising company Ten Network Holdings Ltd. (TEN.AU), Ten said Friday.

Lachlan Murdoch, who owns 8.9% of Ten, replaces Brian Long, who was chairman for just over 12 months and will become deputy chairman and lead independent director.

The move is the latest shake-up at the company, which owns Australia's third highest rating television network, behind Seven Television at number one and Nine Network at number two, since Lachlan Murdoch, casino mogul James Packer and mining billionaire Gina Rinehart took stakes in Ten in 2010.

Ben Le Brun, market analyst with optionsXpress, expects shareholders will be happy with Lachlan Murdoch's appointment given his media experience.

"You'd want Lachlan Murdoch on your side rather than working for one of your competitors," he said.

Lachlan Murdoch became interim chief executive of the company in February 2011 after the then chief executive Grant Blackley was fired as the company forecast earnings for the first fiscal half would be down on the prior corresponding period.

The company embarked on cost cutting and a strategy aimed at boosting ratings by investing in new programs.

It also poached senior Seven executive James Warburton to become chief executive. Warburton had to wait several months to begin his role on Jan. 1 after Seven challenged his appointment in court.

"I look forward to working with the board and our new CEO to re-shape Ten and to improve its performance for the benefit of all shareholders," Lachlan Murdoch said in a statement Friday.

Lachlan Murdoch also said Warburton would join the Ten board as managing director.

Citigroup analysts predicted in a recent note that Ten will look to add scale to its portfolio in 2012, with the most logical target being DMG Radio, which is 50% owned by Lachlan Murdoch.

News Corp. is the owner of Dow Jones Newswires and The Wall Street Journal.

-By Gavin Lower, Dow Jones Newswires; 61-3-9292-2095; [e-mail]