James Packer quits Ten board

James Packer has resigned from the board of the Ten Network. Picture: Jack Atley Source: Getty Images

Mr Packer's departure is effective immediately, while his friend Lachlan Murdoch will remain a director of the broadcaster.

An analyst, who did not want to be named, said Mr Packer's move could be because a bigger deal was under way where there was a conflict of interest between his pay-TV assets, Ten and the competition regulator.

Mr Packer is deputy chairman of Consolidated Media Holdings, a major shareholder in pay-TV operator Foxtel, which is understood to be targeting smaller rival Austar for a takeover.

Mr Packer joined the Ten board in mid-December, along with Mr Murdoch, about two months after Mr Packer snapped up a substantial stake in the broadcaster with bullish comments about the future of free-to-air television and Ten's multi-channel strategy.

In November, Mr Packer sold half his interest in Ten to Mr Murdoch. Mr Packer and Mr Murdoch together hold 17.88 per cent of Ten.

Also yesterday, Ten announced James Warburton, as its new chief executive, effective July 14. He had been Seven's chief sales and digital officer since July 2008.

The network also announced it was returning to a 5pm weekend national news bulletin to be hosted by Natarsha Belling.

It will be complemented by the recently launched local news bulletin at 6pm.

Seven said in a statement it was sorry to lose Mr Warburton.

Fat Prophets industrial analyst Greg Fraser said Mr Warburton had been the prime candidate to succeed Seven chief executive David Leckie, whose contract runs out in mid-2012. Mr Fraser said Mr Warburton would probably seek to remove Ten's new evening news format, which was expensive and had attracted small audiences. Ten credited Mr Murdoch for introducing Mr Warburton to the network.

Mr Murdoch, who had been Ten's acting chief executive, said he knew Mr Warburton well and believed he would lead Ten with great success.

Ten chairman Brian Long said Mr Warburton was "a high calibre media executive with an enviable track record in television and digital media sales".

"He has forged an exemplary reputation in the media sector in Australia and has strong relationships within the media and advertising community."

Mr Warburton would be paid $2.2 million per year fixed remuneration, with up to an additional 50 per cent of that amount based on financial and non-financial performance hurdles, Ten said.