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In a letter to British lawmakers last month, JamesMurdoch acknowledged that he could have done more to investigate wrongdoing at the tabloid but insisted he had been misled and given “false assurances” by subordinates.

JamesMurdoch was re-elected chairman of BSkyB in November despite a groundswell of opposition. BSkyB said he had won the support of more than 81 percent of shareholders who voted, while nearly 19 percent voted against him at the company’s annual meeting.

BSkyB shares were down more than 1 percent at 674 pence ($10.76) Tuesday afternoon.

Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said BSkyB shares were falling because James Murdoch‘s departure would “cause a bit more destabilization.”

Mr. Hunter said JamesMurdoch‘s resignation would not necessarily indicate a waning of News Corp.’s commitment to the broadcaster. Mr. Hunter sees it as a personal issue for the younger Mr. Murdoch: “I wouldn’t read anything more into it strategically.”