Bskyb Boss Chisholm Stepping Down

BSkyB will enter the 200-channel digital era under a new leader after chief executive Sam Chisholm said on Tuesday he was stepping down on health grounds.

New Zealander Chisholm, 57, who has helped to transform the British broadcasting landscape and make BSkyB one of the corporate successes of the 1990s, will give up his job at the end of the year.

He will be replaced by Mark Booth, a 40-year-old American. Booth will move from Japans JSkyB, another part of Rupert Murdochs global television empire. It is no secret that I am an asthma sufferer and my doctors have advised me that I should not take on the next stage of BSkyBs development, said Chisholm, who will remain a director of BSkyB.

 

That next stage centres on the move to 200-channel digital satellite broadcasting, which BSkyB plans to introduce early next year. David Chance, Chisholms deputy, had been regarded as his likely successor. However, a company spokesman said Chance had not applied for the job and would continue in his current role.

Media tycoon Murdoch, whose News Corporation is the leading shareholder in BSkyB, paid handsome tribute to his pugnacious lieutenant Chisholm. Sam Chisholm is unquestionably one of the best executives I have ever worked with. Im really sorry he has to step down and Im very glad he is staying on the board of BSkyB, he said.

BSkyB shares fell 11p to 577p by 1050 GMT as the market echoed Murdochs sentiments. like proving a costly mistake before Sky Television hired Chisholm in 1990.

Chisholm, who had headed Australian broadcaster Nine Network for 15 years, led Sky through a merger with rival British Satellite Broadcasting in November 1990 and the company has not looked back since.More than six million households in Britain and Ireland have signed up for its programmes, lured by a potent mix of top quality sport and Hollywood movies.

Floated in London and New York three years ago, BSkyB now has a market capitalisation of over 10 billion pounds ($16.4 billion). Chisholm has been richly rewarded for his success, his salary package topping 3.8 million pounds last year.

NewBSkyB boss Booth has worked in the television industry for 17 years but media analysts in London said he was a rather unknown quantity.

Booth joined JSkyB, which plans to launch digital satellite services next year, less than six months ago. He had previously headed News Corps Foxtel Australian pay TV joint venture since November 1994 and had earlier organised the European launch of music channel MTV. I have the highest regard for Mark Booth. BSkyB is an amazing company and Mark Booth will continue the companys success, Murdoch said. ($ = 0.611 British Pounds)