Rupert Murdoch is preparing to step down as chief executive of 21st Century Fox, sources close to the company say.
His son James will take over the role, while his other son Lachlan will become executive co-chairman.
The 84-year-old Rupert Murdoch will remain as executive chairman at the company and still have the final say in matters.
The company said the matter of succession would be discussed at the next board meeting.
It would not comment further.
James Murdoch, 42, has been acting as co-chief operating officer at Fox after leaving his job running BSkyB. His new role will entail running the day-to-day business of Fox.
As executive co-chairman, Lachlan will effectively be James' boss.
Chief operating officer, Chase Carey, will step down and take on a role as adviser to the company.
Entertainment firm 21st Century Fox was created two years ago after being split up from Murdoch's less profitable media firm, Newscorp.
It owns the Fox Hollywood studios and television businesses.
In the last quarter, 21st Century Fox reported net income of $975m (£629m), while News Corp, which owns the Wall Street Journal, The Times and The Sun, made a profit of $23m (£15m).