The resignations of Ross Levinsohn at News Corp. and Jonathan Miller at AOL this week took industry watchers by surprise because the two executives had spearheaded turnarounds at their companies and led them into the digital age.
More notable was the fact that the successors to the two New Media titans are regarded by some as Old Media managers who lack a strong understanding of Internet businesses.
But RBC Capital Markets analyst David Bank said there may be a method to the apparent madness in the executive changes. The moves, he said, signal that the media giants think Internet advertising and digital media will become their biggest businesses, requiring managers who are experienced in leading large enterprises with several moving parts.
“The old media guys have more of a track record and more experience and understanding of how to build that business,” Mr. Bank said. “They may be the less sexy media—the Old Media side—but both companies are making a bet that the real success is going to involve the integration” of different types of media properties.
On Wednesday, Mr. Miller—who has steered AOL through its rocky transition from Internet service provider to online advertising company—resigned his post as CEO (see AOL Gets Old Media Head).
He was immediately replaced by Randy Falco, a top NBC Universal executive who will be in charge of shaping AOL’s advertising efforts. Mr. Falco, 52, has spent 31 years at the television network and media company in different positions, most recently as president and COO.
Corner Office Shuffle
The following day, Jason Calacanis resigned as head of AOL’s Netscape.com. Mr. Calacanis, who reported to Mr. Miller, came to AOL last year after the media giant acquired his company Weblogs for $25 million.
Also on Thursday, Mr. Levinsohn, who oversaw News Corp.’s acquisitions of MySpace and videogame network IGN.com, stepped aside as president of Fox Interactive Media, News Corp.’s digital media division (see MySpace Chief Resigns).
He was replaced by Peter Levinsohn, an 18-year Fox veteran who has been instrumental in negotiating deals to distribute the company’s content on digital platforms such as Apple’s iTunes online store.
“At this point in FIM’s evolution, Peter’s adept leadership, keen knowledge of the complexities of the digital space, and ability to work skillfully across multiple business lines makes him the ideal person to lead this important asset into the future,” News Corp. President Peter Chernin said in a statement.
Shares of News Corp. fell $0.10 to close at $22.09 on Friday, while shares of AOL parent company Time Warner rose $0.10 to $20.43.
