Grade to Exit as ITV Exec Chairman

LONDON: ITV plc is looking for a new CEO, with Michael Grade relinquishing the role of executive chairman by year’s end.

The broadcasting group also announced today that in its bid to raise cash, it will be selling off SDN, the DTT multiplex operator it acquired in 2005, and has agreed to terms for covenant-free financing to raise an additional £58 million. "It is the Board’s view that, taken together and ahead of important regulatory decisions expected towards the end of the year, these actions are appropriate in this uncertain market," the company said in a statement, adding: "The Board further believes that the company has adequate liquidity as it stands today and is therefore able to confirm it has no current plans for a rights issue."

With the conclusion of the Office of Fair Trading contract rights renewal (CRR) regulatory review expected soon, as well as the Digital Britain report, Grade said he would relinquish his executive responsibilities  at the company. "Although the outcome of those reviews remains to be seen, we now have a clear timetable for the regulatory process and it is clear to me that this is the right moment for me to be thinking about handing over to my successor," Grade said in an e-mail to ITV staff. "The outcome of those reviews, which are still ongoing, will lead to major strategic decisions for ITV, decisions that are absolutely key to the future of this business, and it is only right and proper that any new CEO take ownership of those decisions."

Grade exits a year earlier than expected—last year his contract was extended from December 2009 to December 2010. ITV said today that a new CEO will be appointed "as soon as practicable following the outcome of the CRR regulatory review process and, in any event, no later than the end of 2009."

Grade has come under intense pressure at the British broadcaster, which has taken a considerable hit due to the economic downturn. ITV recorded a £2.7 billion loss for 2008 after taking a writedown on its ad inventory.