The question of who will take over as the next leader in Rupert Murdoch's News Corp. is coming to a head as the chief operating officer's five-year contract comes to a close in 2009. Peter Chernin, the COO, runs the firm on a day-to-day level and investors attribute much of News Corp.'s success to him. Chernin has been at the firm for 18 years and is seen as source of stability. In addition to overseeing the company, he runs the content business of film and television that sits at the company's heart. Known for his financial acumen and creative flair, he has made Twentieth Century Fox the most consistent producer of hits in Hollywood and is considered the closest thing there is to a leader across the whole entertainment industry. Although Chernin is clearly a leader at News Corp., he is not a Murdoch, and it looks as if Rupert's youngest son James may be taking his place. James was recently appointed as News Corporation's chairman and chief executive for Europe and Asia, and as his power grows, Mr. Chernin's inevitably diminishes. James has shown great promise as an executive, but taking charge of News Corp.'s film studio and cable channels would be a bigger task than he has previously had. If James is tasked with taking Chernin's job, it would be best for Chernin to stay at least another three years to show James the ropes, but whether either party wants that is uncertain.