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Price To Take Channel 4 Job As Burns Bows Out

Price To Take Channel 4 Job As Burns Bows Out

The boss of Waitrose is poised to take on the chairmanship of Channel 4 when Lord Burns steps down early next year ahead of a potential £1bn privatisation of the broadcaster.

Sky News understands that Channel 4 and Ofcom, the broadcasting regulator, have discussed a move for Mark Price to take over as the organisation's acting chairman at the end of January.

Mr Price, who has been Channel 4's deputy chairman since July 2013, has a full-time job as deputy chairman of the John Lewis Partnership and Waitrose's managing director, where he earned the nickname 'the chubby grocer'.

The news that the broadcaster has lined him up to replace Lord Burns underlines ministers' determination - revealed by Sky News last month - not to extend the current chairman's term in order to steer Channel 4 through the implications of the BBC charter review process.

Ofcom, the media regulator, had recommended that Lord Burns be granted an extension when his term expires in less than four months' time, but that argument was rejected by ministers who are keen to explore a sale of Channel 4.

Last month, a confidential document was photographed outlining preparations for a formal review by the Government of Channel 4's status as a not-for-profit public service broadcaster (PSB) - with privatisation firmly on the Government's agenda.

Lord Burns had been keen to examine the possibility of turning Channel 4 into a mutual which retains its PSB remit.

The role of chairman was advertised at the weekend, with a remit to "guide the organisation through a period of substantial change in the sector".

Sources said on Monday that the length of Mr Price's tenure as Channel 4's acting chairman would depend on the length of time that it took to recruit a permanent successor to Lord Burns.

The private document sent last month to John Whittingdale, the Culture Secretary, and Sajid Javid, the Business Secretary, referred to work "to examine the options for extracting greater public value from the Channel 4 Corporation, focusing on privatisation options in particular".

One official with knowledge of the document's contents said that it outlined alternatives including privatising Channel 4 with or without the restrictions of its public service broadcasting remit, and pursuing the charitable trust idea.

If the Government does proceed with a sell-off of Channel 4, whose best-known programmes include Made in Chelsea and Hollyoaks, it could raise in the region of £1bn and contribute to a privatisation programme that would be the largest in British history.

The changes to Channel 4's leadership come as the BBC enters a crucial charter review period that will occupy a significant chunk of the DCMS's attention during the course of 2016.

Under Lord Burns' stewardship, and that of David Abraham, Channel 4's chief executive, the broadcaster's financial performance has stabilised, with a return to financial surplus last year as revenues rose by £30m to £938m.

During the last parliament, plans to sell Channel 4 were raised by Conservative ministers but were abandoned after Vince Cable, the Liberal Democrat business secretary, blocked the move.

Speaking recently, John Whittingdale, the Culture Secretary, said: "The ownership of Channel 4 is not currently under debate.

"Do I say there are no circumstances in which I would ever consider it? No, I don’t,” he said.

Channel 4 declined to comment on Monday.