'Devastated': Sacked ABC boss Michelle Guthrie threatens to sue over 'unjustified' termination

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ABC Chairman Justin Milne said the Board believed it was not in the best interests of the ABC for Guthrie to continue in the head role and that new leadership would benefit the company and the ABC's audiences.

Anderson will serve as acting managing director while Guthrie's permanent replacement is found. Anderson is now Director, Entertainment & Specialist and has worked in the media industry for more than 30 years.

The Australian on Monday reported a split between Milne - who was appointed by the Turnbull government - and Guthrie over the future of the organisation.

'This is driven by our commitment to deliver best possible outcomes for our loyal audience'.

"We understand that transitions can be disruptive in the short-term".

Guthrie highlighted that the commercialisation of the ABC would put greater pressures on the other major networks, labelling a privatised ABC as an "advertising behemoth", adding that it was a poor stance to take by the Liberal government. However, the ABC is fortunate to have an experienced and capable executive team that will provide continuity in the months ahead, " Milne said.

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Michelle Guthrie has been a controversial figure at the ABC as she managed tighter budgets along with leading expansion into new business areas. "In the first two years of my five year term, I have invested more in investigative journalism, more in regional journalism, more in innovative content and increased the efficiency and effectiveness of the ABC", she said.

Deputy Labor leader Tanya Plibersek was "perplexed" by the decision and wants an explanation from the ABC. "We are very grateful for all her hard work".

Under her leadership in March, 200 journalists were controversially retrenched from newsrooms to create a $50 million new Content Fund, where different divisions with new ideas could bid for funding.

"By law, Managing Directors are selected by the ABC Board independently of the Government and Opposition of the day", the ABC noted in its statement.

"The dismissal of the Managing Director, seemingly without notice, requires a full and detailed explanation from the ABC Board", Abetz said.

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