To cheers of "Bibi, king of Israel," PM Binyamin Netanyahu conceded defeat tonight, congratulated his successor, One Israel leader Ehud Barak, and proceded to announce that he is quitting his post as Likud Party leader. With his wife, Sara, Defense Minister Moshe Arens, and Foreign Minister Ariel Sharon at his side, the defeated PM said it is time for him to leave active politics.

Speaking to party faithful at the Likud's Metzudat Ze'ev headquarters in Tel Aviv, Netanyahu thanked them for their efforts and announced he is resigning as party leader.

Netanyahu suffered one of the worst defeats in modern Israeli political history earlier tonight, losing to challenger Ehud Barak by some 14 percentage points, according to exit polls.

The polls, based on tens of thousands of straw votes, have a margin of error of 3 percentage points.