After months of speculation, analysts applauded the selection of a big-hitting turnaround specialist, with strong links to the Tories, to guide ITV’s strategy moving forward.
Norman has been credited with turning around supermarket chain Asda, before selling it to US chain Wal-Mart in 1999, and restructuring telecoms group Energis before selling it to Cable & Wireless for double the original enterprise value.
Norman’s priority will be to recruit a new chief executive to replace outgoing boss Michael Grade. ITV has been trying to fill the role since April, with an embarrassing lack of progress. But the process was put on hold in September until a new chairman was found.
Analysts speculated that a chairman of Norman’s calibre could persuade interim chief executive John Cresswell, who was planning to leave ITV once the position was filled, to stay at the company.
Norman’s appointment also has political implications. ITV has battled regulatory constraints since it was created by the merger of Carlton and Granada in 2004, and was disappointed in September when Ofcom decided against relaxing advertising rules.
“If the Tories come to power next year and go ahead with reducing Ofcom’s power, having someone with an ‘in’ to David Cameron could be helpful,” said Panmure Gordon analyst Alex DeGroote.
No comments:
Post a Comment