James Murdoch stepped down today as executive chairman of News International, in the wake of a phone-hacking and bribery scandal that has rocked his family's publishing empire.

Murdoch oversaw the UK division of News Corporation, which is in crisis mode amid an ongoing investigation involving two of its publications.

Rupert Murdoch said in a statement that his 39-year-old son would now focus on the company's pay-television businesses and its international operations, with New York as a home base. The younger Murdoch will remain deputy chief operating officer of News Corporation.

Once touted as the heir to the News Corporation empire, Murdoch controlled News International while private citizens and celebrities had their phones hacked by journalists. He has continuously denied being aware of the phone hacking or authorizing payments to silence the victims. News Corporation is currently attempting to settle lawsuits with the victims.

While the scandal eventually forced News of the World out of print, Murdoch praised the launch of his father's latest tabloid Sun on Sunday, which reportedly sold more than 3 million copies on its first day.

"With the successful launch of Sun on Sunday and new business practices in place across all titles, News International is now in a strong position to build on its successes in the future," he said in the statement.

News International CEO Tom Mockridge will take over Murdoch's role.