UPDATED: Ten Network has terminated Grant Blackley's contract as chief executive officer, with Lachlan Murdoch installed as his temporary replacement.
A statement from Ten said the decision was made at the unanimous request of the board. Murdoch will step in during the period that an executive search is undertaken for a new CEO. Blackley's departure was first flagged by AdNews last week.
The move comes amid market speculation that Henry Tajer, the executive chairman of Mediabrands, could be in talks to take control of Ten's network sales. Tajer is known to have close links with Murdoch, but has quashed rumours of his interest in the role to AdNews.
Sources also said that Murdoch could remain in the job for longer than Ten's statement suggests. Blackley's exit comes just two months after Ten extended Blackley's contract, and a leading analyst said that changes made under Blackley's watch had raised the prospect of a "terrible ratings outlook" for the Ten network under the revamped news format.
Ten 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.”
“I would like to thank Grant Blackley for his contribution to the Company over some 20 years. The Board would also like to thank Lachlan Murdoch for agreeing to accept an interim role at the Board’s request.”
In the same statement, Ten issued a grim revised earnings forecast for the half year ending 28 February. Ten's group EBITDA is predicted to come in at $103 million, down from $117 million, with revenue growth of just 2% in television for the first half of 2010. TV EBITDA is expected to be come in at $92 million, down from $109 million, across the same period.
According to SMI data obtained by AdNews for the 12 months to December 2010, Ten's share of ad revenue fell 2.2 share points to 28.1%. SMI tracks media agency bookings only accounting for about 85% of the TV market.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.