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Grade quits BBC post to join ITV Grade quits BBC post to join ITV
(10 minutes later)
Michael Grade has resigned as BBC chairman and is to join ITV, the corporation's main terrestrial rival.Michael Grade has resigned as BBC chairman and is to join ITV, the corporation's main terrestrial rival.
ITV, which has been struggling with falling advertising and ratings, said the appointment was a "real coup".ITV, which has been struggling with falling advertising and ratings, said the appointment was a "real coup".
Mr Grade said his first priority would be to improve programming at ITV, which he will join early next year.Mr Grade said his first priority would be to improve programming at ITV, which he will join early next year.
The move is a major blow to the BBC, where Mr Grade was steering it through complex licence fee negotiations with the government. Analysts say it is a major blow to the BBC, where Mr Grade was steering it through complex licence fee negotiations with the government.
The BBC said it was "disappointed" by Mr Grade's decision to leave but added that he had been an "inspirational leader".The BBC said it was "disappointed" by Mr Grade's decision to leave but added that he had been an "inspirational leader".
'Tough decision''Tough decision'
Mr Grade had been due to head the independent BBC Trust that was to replace the Board of Governors from January and oversee the BBC.Mr Grade had been due to head the independent BBC Trust that was to replace the Board of Governors from January and oversee the BBC.
Current BBC vice-chairman Anthony Salz will succeed Mr Grade until the end of the year, while Chitra Bharucha, vice-chairman of the new BBC Trust, will take up the position on a temporary basis until a new chairman is appointed.Current BBC vice-chairman Anthony Salz will succeed Mr Grade until the end of the year, while Chitra Bharucha, vice-chairman of the new BBC Trust, will take up the position on a temporary basis until a new chairman is appointed.
ITV has been looking for a new boss since Charles Allen left in August.ITV has been looking for a new boss since Charles Allen left in August.
Its shares rose more than 1% in early trading after news of Mr Grade's appointment was announced.Its shares rose more than 1% in early trading after news of Mr Grade's appointment was announced.
It was an opportunity I could not resist Michael Grade, BBC chairman on ITV job Check ITV's shares The future for Grade, BBC, ITV Profile: Michael GradeIt was an opportunity I could not resist Michael Grade, BBC chairman on ITV job Check ITV's shares The future for Grade, BBC, ITV Profile: Michael Grade
Mr Grade will run the company as executive chairman, and has committed to hold the post for up to three years.Mr Grade will run the company as executive chairman, and has committed to hold the post for up to three years.
Acting chief executive John Cresswell will work with him as chief operating officer, while chairman Sir Peter Burt will step down in March.Acting chief executive John Cresswell will work with him as chief operating officer, while chairman Sir Peter Burt will step down in March.
Mr Grade said it was a "great privilege" to take on the role.Mr Grade said it was a "great privilege" to take on the role.
"It has been a tough career decision to leave the BBC but it was an opportunity I could not resist, given my family's history in the founding of ITV and my own background at London Weekend Television," he said in a statement to the Stock Exchange."It has been a tough career decision to leave the BBC but it was an opportunity I could not resist, given my family's history in the founding of ITV and my own background at London Weekend Television," he said in a statement to the Stock Exchange.
He added: "My first priority at ITV will be to support the team in accelerating the improvement in programming performance for our viewers and advertisers."He added: "My first priority at ITV will be to support the team in accelerating the improvement in programming performance for our viewers and advertisers."
"Real coup""Real coup"
Analysts said that Mr Grade was a charismatic figure who could restore confidence in ITV and help the company attract advertisers.Analysts said that Mr Grade was a charismatic figure who could restore confidence in ITV and help the company attract advertisers.
They added that Mr Grade was one of the few figures in the media industry with the experience and skills to take the helm at ITV.They added that Mr Grade was one of the few figures in the media industry with the experience and skills to take the helm at ITV.
"For the first time in ages, ITV executives can afford a smile," said Robert Peston, the BBC's business editor. "They've got a new boss who has television in his blood. "For the first time in ages, ITV executives can afford a smile," said Robert Peston, the BBC's business editor. "They've got a new boss who has television in his blood."
The Board is disappointed he is moving to ITV but he leaves behind a BBC that is passionate about and committed to serving the public in new and exciting ways Anthony Salz, acting BBC chairmanThe Board is disappointed he is moving to ITV but he leaves behind a BBC that is passionate about and committed to serving the public in new and exciting ways Anthony Salz, acting BBC chairman
Question marks have hung over ITV's future in the face of rising competition from digital TV firms, low viewing figures and falling advertising revenues.Question marks have hung over ITV's future in the face of rising competition from digital TV firms, low viewing figures and falling advertising revenues.
Many analysts had predicted that ITV would become a takeover target, and satellite broadcaster BSkyB has bought a 17.9% stake in the firm for £940m.Many analysts had predicted that ITV would become a takeover target, and satellite broadcaster BSkyB has bought a 17.9% stake in the firm for £940m.
ITV had previously rejected a £4.7bn-takeover offer from cable operator NTL.ITV had previously rejected a £4.7bn-takeover offer from cable operator NTL.
ITV said Mr Grade's appointment was a "real coup" for the firm and he would bring "unrivalled broadcasting experience" to the business.ITV said Mr Grade's appointment was a "real coup" for the firm and he would bring "unrivalled broadcasting experience" to the business.
Left behindLeft behind
Mr Grade's departure is problematic for the BBC, which will have its third new chairman in seven years.Mr Grade's departure is problematic for the BBC, which will have its third new chairman in seven years.
Mr Grade's move leaves questions for BBC boss Mark ThompsonMr Grade's move leaves questions for BBC boss Mark Thompson
He was heavily involved in negotiating an increase in the BBC licence fee, pushing hard to win a rise of 2.3% above the rate of inflation.He was heavily involved in negotiating an increase in the BBC licence fee, pushing hard to win a rise of 2.3% above the rate of inflation.
While he has found a sympathetic ear in Culture Secretary Tessa Jowell, he was facing stiff opposition from Prime Minister Tony Blair and Chancellor of the Exchequer Gordon Brown.While he has found a sympathetic ear in Culture Secretary Tessa Jowell, he was facing stiff opposition from Prime Minister Tony Blair and Chancellor of the Exchequer Gordon Brown.
One television executive said Mr Grade may have decided to leave the BBC because of the changes to his job and his role as head of the BBC Trust, seeing him play a more regulatory and less hands-on role.One television executive said Mr Grade may have decided to leave the BBC because of the changes to his job and his role as head of the BBC Trust, seeing him play a more regulatory and less hands-on role.
The BBC said that along with director general Mark Thompson, Mr Grade had achieved a successful charter settlement, while the future system of governance he helped secure would strengthen the BBC's accountability.The BBC said that along with director general Mark Thompson, Mr Grade had achieved a successful charter settlement, while the future system of governance he helped secure would strengthen the BBC's accountability.
"The Board is disappointed he is moving to ITV but he leaves behind a BBC that is passionate about and committed to serving the public in new and exciting ways," said Mr Salz."The Board is disappointed he is moving to ITV but he leaves behind a BBC that is passionate about and committed to serving the public in new and exciting ways," said Mr Salz.


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