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BBC chairman Grade moves to ITV BBC chairman Grade moves to ITV
(10 minutes later)
BBC chairman Michael Grade is to leave the public service broadcaster and move to its biggest terrestrial rival ITV.BBC chairman Michael Grade is to leave the public service broadcaster and move to its biggest terrestrial rival ITV.
The move will be a blow to the BBC, where Mr Grade was steering it through complex licence fee negotiations with the government.The move will be a blow to the BBC, where Mr Grade was steering it through complex licence fee negotiations with the government.
He was also due to head the independent BBC Trust that was to replace the Board of Governors and oversee the BBC.He was also due to head the independent BBC Trust that was to replace the Board of Governors and oversee the BBC.
ITV has been looking for a new boss since Charles Allen left in August as the firm has seen advertising decline.ITV has been looking for a new boss since Charles Allen left in August as the firm has seen advertising decline.
Steadying handSteadying hand
Robert Peston, the BBC's business editor, said that Mr Grade would take over as executive chairman of ITV on 1 January 2007. Robert Peston, the BBC's business editor, said that Mr Grade will take over as executive chairman of ITV on 1 January 2007.
Mr Grade will run the company, and has committed to hold the post for three years. John Creswell will work with him as chief operating officer.Mr Grade will run the company, and has committed to hold the post for three years. John Creswell will work with him as chief operating officer.
Analysts said that Mr Grade is a charismatic figure who can 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.
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.
Left behindLeft behind
Analysts also called the defection of Mr Grade a coup for ITV and said it would be a blow to the BBC. Analysts also called the defection of Mr Grade a coup for ITV.
Mr Grade was heavily involved in negotiating an increase in the BBC licence fee, and has been pushing hard to win a rise of 2.3% above the rate of inflation.Mr Grade was heavily involved in negotiating an increase in the BBC licence fee, and has been 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 of 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 that 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, which would have seen him play a more regulatory and less hands-on role.One television executive said that 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, which would have seen him play a more regulatory and less hands-on role.
Analysts said that it will important to see how Mr Grade's role at ITV is defined - will he be there to guide ITV through the new digital age or will he be more involved with overseeing the recovery of ITV1 and its programming schedule? Analysts said that it would important to see how Mr Grade's role at ITV was defined - would he be there to guide ITV through the new digital age or would he be more involved in overseeing the recovery of ITV1 and its programming schedule?
Jeff Randall, a former BBC business editor who broke the story in the Daily Telegraph, said that Mr Grade is "likely to have demanded a remuneration package of unprecedented riches" to make the move. Jeff Randall, a former BBC business editor who broke the story in the Daily Telegraph, said that Mr Grade was "likely to have demanded a remuneration package of unprecedented riches" to make the move.


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