BSkyB has today confirmed that Tony Ball is to step down as chief executive, after four years at the helm of the satellite broadcaster.
Ball will continue in his current position until a successor is appointed, but he is expected to leave well before his current contract expires at the end of May next year. He will also resign as director of the company, but will take on a new role as consultant to Rupert Murdoch’s News Corporation. News Corp is the largest shareholder in BSkyB with a 35.4% stake.
The announcement ends a week of speculation over Ball’s future at BSkyB after it emerged that he was planning to step down as part of a wider management shake-up implemented by the company’s chairman, Rupert Murdoch (see Ball Could Depart BSkyB After Management Restructure).
The search for a new chief executive will be overseen by BSkyB’s nomination committee, under the leadership of senior independent non-executive director, Lord St John of Fawsley. He will be assisted by other non-executive directors.
However, reports suggest that Murdoch is planning to give the job to his youngest son James, who is currently head of Murdoch’s Star TV network in Asia. Some fear this would allow him to divert cash from BSkyB into other parts of his media empire.
Shareholders are believed to have expressed concern over the proposals and earlier this week it was suggested that Rupert Murdoch could step aside as chairman of BSkyB in an attempt to appease investor anxiety. However, reports claim it is unlikely that Murdoch will consider stepping down as chairman merely to deflect accusations of nepotism (see Murdoch Could Step Down As BSkyB Chairman).
Ball joined BSkyB in June 1999 and since then he has achieved a number of operational and financial successes. During his tenure, subscriber numbers have doubled to almost 7 million and revenues have grown to £3.2 billion. The company has also returned to profit after a sustained period of investment in digital.
Commenting on his departure, Ball said: “I have enjoyed my time at Sky enormously, and am very proud of the achievements of the whole team. I leave with many happy memories and a firm belief that the company is now well positioned to continue to deliver on its operational and financial targets. I look forward to helping to make the transition to a new chief executive as seamless as possible.”
Rupert Murdoch added: “Tony Ball has shown himself to be one of the outstanding businessmen in Britain. Under his leadership Sky has successfully brought digital TV to millions of British homes. The company now stands ready to reap the rewards of its investments. Tony leaves behind a talented group of executives and I am confident that they will continue to deliver fantastic results for all shareholders.”
