BBC Worldwide Chief Makes Shock Resignation
The BBC has confirmed that Rupert Gavin, chief executive officer of the Corporation’s commercial Worldwide arm, has resigned from his role without reason and with immediate effect.
The unexpected move by Gavin, profiled in today’s Times Business supplement, comes as the Corporation faces increasing pressure from rival companies to downsize its commercial operations.
Commenting on the shock resignation, BBC Director-General Mark Thompson said: “Rupert has taken Worldwide to record levels of success and the company is now a market leader in key areas both in the UK and globally. Under his leadership, the company has maximised the value of BBC assets, bringing benefit to licence payers, and has successfully grown the BBC name around the world. We thank him and wish him well.”
According to the recently published BBC Annual Report, BBC Worldwide notched up a record cash flow to the BBC of £141m last year, a year on year increase of 14%, which was reinvested into the Corporation’s public service broadcasting.
In a statement announcing his departure, Davies said: “Putting BBC Worldwide on the map as one of the UK’s truly global media players is something I’m very proud of. In the last seven years the Worldwide team have continued to hit targets, generating over £704m for the BBC’s public services. It has a strong future and it feels like the right time to make this move.”
The BBC is currently undertaking a comprehensive review of its commercial businesses, including Worldwide, led by chief operating officer John Smith and due to be complete by the end of the year. Smith will now take responsibility for BBC Worldwide’s affairs in the wake of Davies’ resignation.
Reports circulating earlier this week hinted at a possible sale for BBC Worldwide, believed to be worth around £1 billion. The sale would being the Corporation closer to its core public service remit and could be seen as a defensive measure in the run up to charter review in 2007 (see BBC Considers £1 Billion Sale Of Commercial Arm).
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