Lachlan Murdoch was named acting chief executive officer of Ten Network Holdings in his most senior role since leaving his father Rupert’s News Corp in 2005.
The appointment is effective immediately, after the firing of Grant Blackley, while the board seeks a permanent replacement, Sydney-based Ten said in a statement today. Blackley headed Ten for 10 weeks after replacing Nick Falloon at the least watched of Australia’s three commercial broadcasters.
Ten’s ratings have slid this year as it expanded prime-time news and current affairs programming to appeal to older viewers and moved youth-oriented shows such as “The Simpsons” and “Neighbours” to a new digital channel. The younger Murdoch and billionaire James Packer joined the board in December after acquiring 18 per cent of Ten, as did Australia’s richest woman Gina Rinehart, who bought a 10 per cent stake.
“The ratings performance of the new lineup has been disappointing and Blackley looks rather like the fall guy for it,” said Mark McDonnell, an analyst at BBY in Sydney, who has a “hold” rating on the stock. “The new directors clearly aren’t as wedded to the strategy as Blackley.”
Ten fell 3.4 per cent to A$1.285 at the 4.10 pm close of trading in Sydney, giving it a market value of A$1.34 billion ($1.34 billion). The stock has dropped 9.2 per cent this year, lagging behind the 2.1 per cent gain for Australia’s benchmark S&P/ASX 200 index.
Earnings before interest, taxes, depreciation and amortisation will fall to A$103 million in the six months ending February 28, from A$117 million a year earlier, Ten said today. The broadcaster is scheduled to report earnings on April 7.
Murdoch-Packer team
Packer, son of the late media tycoon Kerry Packer, teamed with Lachlan Murdoch in October to buy the stake in Ten before they both accepted board roles. Rinehart, who is worth $9 billion according to Forbes Asia, acquired a 10 per cent holding in November, according to regulatory filings.
Lachlan Murdoch, who remains a director of News, quit as the New York-based company’s deputy chief operating officer in July 2005 to move to Australia with his family.
His sister Elisabeth Murdoch is expected to join the News board upon completion of its purchase of her UK-based television production company Shine Group for £415 million ($672 million), an agreement announced this week.
In 2009, Lachlan Murdoch’s private company Illyria acquired a 50 per cent stake in Daily Mail and General Trust’s radio network in Australia.
Jeannette McLoughlin, a Sydney-based spokeswoman for Ten, said Blackley wasn’t available for an interview and has left the company.
