Michael Grade, the chairman of the BBC, is to become the new head of rival ITV. Grade will replace both the current chairman of ITV, Sir Peter Burt, and take on the responsibilities of the vacant chief executive position. ITV has been without a chief executive since Charles Allen announced in August that he was leaving.

The BBC issued a statement, which read: "Clearly this is a surprise, especially at this moment. For the last two-and-a-half years, Michael Grade has been a great chairman, who along with the director general Mark Thompson has achieved a successful charter settlement for the BBC. The future system of governance, secured by Michael, will strengthen the BBC's accountability to its audiences. We wish Michael well." 

Michael Grade, 63, is highly regarded as a businessman and as a media executive. Among his previous jobs, he has been chief executive of Channel 4 and director of television at the BBC. Analysts said that Mr Grade's experience and achievements placed him well above most of those tipped for the vacant chief executive job at ITV.

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