Lachlan Murdoch takes the helm of Ten as Grant Blackley is fired
Lachlan Murdoch has been named acting CEO of Network Ten after the board sensationally announced the departure of Grant Blackley. The move coincided with Ten’s revealing unexpectedly poor profit numbers for the first half of the financial year.
The board also revealed it would be revisiting its strategy, throwing an even greater shadow over the ratings-challenged 6PM With George Negus.
Although the company stressed that Murdoch’s appointment is an interim one, the move will inevitably raise questions over whether he will take the role on a permanent basis. Murdoch joined the board last year after he and James Packer became major shareholders.
Despite the success of Masterchef and a strong launch for digital channel Eleven, the board informed the ASX of a profit fall of more than 15% for the company’s TV operation.
The first half of the financial year – which for Ten runs until the end of this month – is likely to see profits for the TV division down to $92m, compared to $109m at the same time last year.
The revelation will come as a major shock to the market as the TV advertising sector has been buoyant.
Blackley’s axing comes just three months after the Ten board extended his contract to 2013.
Ten said that Murdoch’s move into the acting CEO role was “at the unanimous request of the board”. It signalled a search would be undertaken for a new CEO.
In a move that appears to signal an early rethink for Ten’s controversial news scheduling strategy, board chairman Brian Long said: “The Board continues to be responsible for all decisions regarding the strategic direction of the Company, and has decided to conduct an immediate strategic review of the Company’s operations.”
Blackley’s boldest move was to move Neighbours and The Simpsons to new channel Eleven and launch a two-and-a-half hours news strand including the George Negus-fronted 6pm national news show.
The announcement stated: “The Directors also advised they have received preliminary information associated with the forecast financial results for the half year period to 28 February 2011. On the basis of these forecasts, the Board anticipates that Group earnings before interest, tax, depreciation and amortisation (EBITDA) for the half year to 28 February 2011 will be approximately $103 million (1H FY10 – $117 million). Television EBITDA is expected to be $92 million (1H FY10 – $109 million) with revenue growth of 2 per cent on the prior six month period. Out-of-Home EBITDA is expected to be $11 million (1H FY10 – $8 million).”
Long said: “I would like to thank Grant Blackley for his contribution to the Company over some 20 years.”
Blackley’s sacking comes just five months since the company revealed its aggressive plans for 2011. The key parts of the announcement were a performance spectacular called Don’t Stop Believing, the new news lineup and new renovation reality contest The Renovators.
Ten later ditched its plans for Don’t Stop Believing and ratings for Negus are yet to touch the modest 500,000 target set by the show’s EP Tony Ritchie.
At the time, Blackley told Mumbrella: “I think we’re on a great path.” He also said that the controversial news strategy was “a positive calculated risk.”
Last night Negus rated just 374,000 – well behind Seven News (1.353m) and Nine News (1.196m) which both picked up viewers hungry for news of the New Zealand earthquake.
This afternoon, Ten’s share price dropped slightly on the ASX.
Hmmmm. Interesting.
Wonder what Ian Law is up to these days?
#justwondering
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Could this be the start of wholesale changes????
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Lachlan as CEO. What could possibly go wrong?
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let’s hope he’s learned a bit from previous stuff ups and doesn’t run this one into the ground
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Nine Sales need the help of a seasoned pro, who agencies actually like, as well as respect!
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Yes the ways of the media are mysterious but how does a CEO from go to woe in three months? Simply the profit disappointmen. Gee, we’ve only had four weeks of the block to block new series.
Yes the news programming is excessive – well in one block it is. But with their “encore” of Negus after their night time programming, are they taking a tilt at Lateline. It’d be a great time for it as Ali Moore settles in, and 7.30’s talent steals some of the stories and attention?
What does Lachlan bring anyway in terms of CEO experience? He’s no Greg Hywood. And surely there’s nothing let to take from Daddy’s Fox entertainment programming to put on Eleven.
Guess we’ll wait and see what Bruce Gordon has to say.
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Surely Lachlan’s business experience counts against him – do we all remember the OneTel fiasco and his flawed memory? Not what we expect from the CEO of a major company.
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those moguls have too much time on their hands. Last time I looked, Lachlan’s financial credentials weren’t the best I’d seen. Having and spending a lot of money does not a CEO or CFO make. Isn’t that like putting the Greens in charge of NSW? Lovely thought, but doesn’t exactly fill you with confidence.
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How is Grant’s departure “sensational”as you say if your rival reported he was on his way out weeks ago. Has been on the cards for a while. Keep up Tim!
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I would like to thank all those involved in identifying a piece of Australian media without a Murdoch in charge and swiftly rectifying the situation.
On behalf of all Australians I say “Whew”.
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AdNews reported this week’s ago and they’ve got the inside story. Keep up chaps
http://www.adnews.com.au/news/.....s-contract
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Hey Ian, I work at TEN and knew it was coming… Still feels pretty “sensational” all the same. In the stimulating sense of the word… Grant is a good man and no matter what the last quarter might say he was a good boss too. He’ll kick on, a great optomist!
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@Ian
Please do point me to the story where AdNews has explicitly said Blackley is ” on his way out” trawling through all is the article where you announce an extension of his contract.
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Let’s see what happens to ONE now… my guess – sports lovers without the coin to splash on Fox will be disappointed.
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Why do the staff of Adnews seem to spend so long on this site if they think theres is so much better?
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Oh yeah – and I just followed the link from “Pamela”.
Inside story? A rumour that Henry Tajer wants the job followed by a denial.
if you know it as a fact, report it as a fact. If you don’t know it, then don’t claim to know it.
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Of course George will take a hit with the changes at 10. Murdoch, staunch conservative like his lamentable father, will demand the pinko lefty be removed with prejudice…the new world order, perhaps?
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Sadnews – I’m with you. Inside Story my arse!
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Jobs for the boys! Pathetic.
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OMG! How long will it be before Lachlan and James manage to run this company into the ground?
One can only hope that Gina manages to keep them under control.
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Someone asked … Lachlan as CEO. What could possibly go wrong?
More likely, what could possibly go right? Cut, slash and burn are now in charge. Wall to wall Simpsons replays and cooking show left overs across the Ten channels – and no more live sport. That’s what Foxtel’s for.
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He’s sacked just after he signed a 3 year contract, and after 20 years with them?
So a nice payout, minimum of a year on the sidelines and then back into some non-exec roles. Nice.
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I’m with Laura, this to me is all about killing ONE. All Lachlan needs to do is knife the competitor to Fox Sports and his job is done.
Is there any thought that the ACCC might get involved? Taking a sub-15% stake is one thing, but becoming CEO is another.
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Grant is a great TV man and a great boss with about 24 years at 10. He’s a champ and will do well at whatever he chooses to do, if he can be bothered working again! Great career Grant!! Well done!!
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@sadnews my reading of the situation is that Mumbrella and Lynchy’s fanzine are obsessed with Adnews. They write about them everyday. Total yawnathon. Take a look at this from just this week
https://mumbrella.com.au/index.php?s=Jeremy+Light
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Well done to Grant! Time you moved on anyway, you’ve outgrown the network. Onto bigger & better things.
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Wait – the focus should be on the ex-CEO.
Surprise, surprise – a CEO (or senior management) not actually doing their job. Like I haven’t seen that 1,000 times before in advertising. What – was he on facebook on his blackberry all day ?
Oh wait – I’m not in advertising any more. (Bitter, much?) LOLz
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Murdoch, the greatest enabler of cultural destruction in the English speaking world since WW2
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OneTel. Funtastic. Rajastan Royals. DMG Radio. Who is going to get burnt in this one?
Going and destroying what others worked hard to build seems to be his modus operandi these days. Lachlan should have stayed working with Dad for a few more years and he would have become a force to be reckoned with as a businessman. Alas – he is now a force to be reckoned with as a wrecking ball.
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Murdoch is a superstar of the Australian Media landscape. A great operator, with a delightfuly postitive manner.
All you clowns above who criticise him have never worked with him, or for any manager who is close to Murdoch’s calibre.
I pitty you for not showing the appropriate respect for a World Class Business Man, from the Worlds most successful media overnership family.
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