“The realignment positions [the four divisions] better for customers’ needs,” said Keith Turco, senior VP-global branding of CA. “As long as changes come to benefit customers and key constituents, the evolution of media properties and growth is a good thing.”
As part of the reorganization, which was announced early Friday, the CMP name has been eliminated.
The four new divisions, now part of UBM-U.S., are:
- TechWeb (www.techweb.com/aboutus), led by CEO Tony Uphoff. TechWeb, formerly CMP’s Business Technology Group, produces events such as Black Hat, Interop, VoiceCon and Web 2.0. Its other assets include InformationWeek, MSDN and TechNet.; bMighty.com, which covers the small and midsize business market; Intelligent Enterprise; Light Reading; the Financial Technology Network; and the TechWeb Network.
- Everything Channel (www.everythingchannel.com), led by CEO Robert Faletra. The unit, formerly CMP Channel, focuses on the indirect sales channel for technology purchases. It includes the ChannelWeb online network; CRN and VARBusiness; the XChange and Vision events; work flow tools (MTC and eXalt); telerecruiting; sales support; marketing services; research; and education.
- TechInsights (www.techinsights.com), led by CEO Paul Miller. The division, formerly CMP’s Electronics Group, focuses on technical information for the electronics industry. It includes EE Times, Embedded Systems Conferences, Portelligent, Semiconductor Insights and TechOnline.
- Think Services (www.think-services.com), led by CEO Philip Chapnick. Think Services, formerly CMP’s Game, Dr. Dobb’s and International Customer Management Group, connects specialized communities via interactive media and educational events. Its products include the Dr. Dobb’s Journal, Game Developers Conference, Gamasutra.com, Help Desk Institute and International Customer Management Institute.
Turco said the restructuring will have no impact on CA’s media spending with what is now TechWeb. “We’ll continue to partner with them,” he said.
The new businesses will share back-office functions and a strategic account team for integrated ad sales. Scott Mozarsky, who was CFO of CMP, has been named COO to manage the centralized functions. Other functions will be decentralized.
“With the four new divisions, we’re now a much more agile and more focused business,” said UBM CEO David Levin in an interview with BtoB. “We’ll be able to pursue target markets faster and address customer needs better.” He said advertisers’ initial reaction to the restructuring has been positive.
Ed Fitzelle, managing director of media investment bank Whitestone Communications, applauded UBM’s move. “If you look at it forensically, the media evolution is at a tipping point of do you change the way you operate based on the migration of revenue from print to online.”
He added: “It’s a solution to the issues and problems [CMP] has been grappling with, and they took an opportunity to make a change.”
In the last several years, CMP had morphed from a print-centric business into one geared toward events and the Web. In 2004, print generated 75% of revenue. However, after 18 acquisitions worth about $225 million in the last three years, print will account for about 24% of revenue this year on a pro forma basis, followed by events (40%), online (20%) and data and services (16%).
“The shape of the business has clearly changed radically and in an exciting way,” Levin said. “We’re increasingly serving different markets, and CMP as a holding company was not an enabler but was holding the entity back.”
The reorganization comes a little more than three months after Steve Weitzner stepped aside as CEO of CMP to run its international division. In January, Weitzner became chairman-CEO of CMP rival Ziff Davis Enterprise.
UBM on Friday announced its 2007 earnings. Net income fell to $216 million (U.S.) from $281 million (U.S.) a year earlier. Sales rose 8.5% to $1.5 billion (U.S.).