Nine Entertainment (ASX:NEC) has announced its CEO Mike Sneesby is stepping down before the footlamps – on the same day the stock trades ex-dividend.
While that could be a coincidence, it would theoretically make it harder to tell at first glance if the company’s share price was falling because of that CEO decision or the dividend, should it fall at all.
But there could be a reason to be strategic.
Nine Chair Peter Costello left the building only a few months back after he attacked a journalist in an airport. Or ‘bowled over,’ or ‘bumped into,’ depending on how you feel about journalists. At any rate, there was an interaction not defined by pleasantry between Costello and a journalist which for the latter included a demonstration of the laws of gravity.
Nine wrote on Thursday that the conclusion of the Paralympics was the catalyst to make the move towards a “strategic transformation” by transitioning Sneesby out the door.
(While the company’s bread and butter is winning the rights to broadcast such things, which it will until 2032, it’s not like Nine actually has anything to do with the Olympics.)
So who will step in? Nine’s CFO Matt Stanton will be in the mix while a replacement is found. Sneesby leaves the building on October 1 after more than 10 years of service.
“[Nine has] navigated significant change in the media landscape in Australia,” Sneesby said on Thursday.
“I am confident in the future of Nine and remain committed to ensuring a seamless handover to Matt.”
The company’s announcement also billed Sneesby with building up Stan off the ground – the Australian Netflix.
NEC last traded at $1.25.