Reuters spoke to a some unnamed members of News Corp.'s senior management and sources close to the Murdoch family. Everybody seems to be wondering when James Murdoch is going to bow out:

"The company is still trying to operate as if James isn't going anywhere," said another high-ranking insider. "But everyone is thinking about what will happen if he has to step aside."

Through a representative, Rupert Murdoch and News Corp senior management said it was "absolutely not true" the company was thinking about the possibility that James may step aside. …

"I'm waiting for the moment when he says, 'What the hell am I doing here, I need a breather,'" the source said. "And I wouldn't be surprised if the people who are speaking to him and watching him aren't wondering if the time has come for him to drop the (corporate) act."

With such strong denial from News Corp., Reuters' report seems sort of gossipy, but the investigation into phone hacking in London has taken a troubling turn for Murdoch. "Devastating" evidence emerged Tuesday suggesting that James lied to Parliament, and he's expected to be called back by the committee investigating the allegations.