Lining up for Pittman's job
By PHYLLIS FURMAN
DAILY NEWS BUSINESS WRITER
Monday, July 29th, 2002
AOL Time Warner's getting close to naming a new boss for its ailing America Online division - and it's not ousted Bertelsmann CEO Thomas Middelhoff.
The flagging media giant has assembled a short list of candidates from outside the company. They include Blockbuster Video chief John Antioco; Jon Miller, the ex-president of the USA Interactive's information services group; Paul Pressler, who heads Disney's theme parks division, and Comcast Cable president Stephen Burke, media industry sources said.
The list could expand now that former Time Inc. boss Don Logan has been elevated to co-COO of AOL Time Warner, overseeing AOL. Another name mentioned is Marjorie Scardino, who heads publisher Pearson.
"Don Logan will bring in someone he knows and trusts, a marketing and circulation expert," said Porter Bibb, managing director of Technology Partners.
The new AOL boss will succeed Bob Pittman, who got the boot from AOL Time Warner two weeks ago. Pittman, the empire's No. 2, had also run the flagging online company.
Word that Middelhoff could be heading over to AOL Time Warner surfaced yesterday after his ouster over the weekend from the German media giant that owns such properties as Random House and music giant BMG Entertainment.
Middelhoff, who had just signed a new contract, is expected to get a severance package valued at between $10 million and $20 million.
His name has been linked to AOL Time Warner because he is a friend of the media empire's chairman Steve Case. Middelhoff was an early believer in AOL and turned Bertelsmann's early investment in the company into $6.8 billion.
A more likely roost for Middelhoff is German telecom giant Deutsche Telekom, where he would replace ousted CEO Ron Sommer. But media sources were skeptical yesterday, claiming Middelhoff will have a tough time recovering from his ouster from Bertelsmann.
The high-profile media mogul was forced out after clashing with the low-key family that controls the privately held German company. They balked at his plans to take public the company that began nearly two centuries ago as a religious publisher.
His ouster follows the firing of AOL Time Warner No. 2 Pittman and Vivendi Universal's Jean-Marie Messier and spotlights the difficulties media execs face in making good on the promise of fusing old and new media.
"This business has gotten more challenging, said Michael Wolf, head of McKinsey's global media practice. "CEOs are under more pressure to deliver operational results rather than making major acquisitions."
Sources said Middelhoff told the Bertelsmann board that he was being lured by Deutsche Telekom, even though a concrete offer may not exist.
"His career is over," said a source close to the company. "Middelhoff was shocked by his ouster."
http://www.nydailynews.com/business/story/6949p-6467c.html
By PHYLLIS FURMAN
DAILY NEWS BUSINESS WRITER
Monday, July 29th, 2002
AOL Time Warner's getting close to naming a new boss for its ailing America Online division - and it's not ousted Bertelsmann CEO Thomas Middelhoff.
The flagging media giant has assembled a short list of candidates from outside the company. They include Blockbuster Video chief John Antioco; Jon Miller, the ex-president of the USA Interactive's information services group; Paul Pressler, who heads Disney's theme parks division, and Comcast Cable president Stephen Burke, media industry sources said.
The list could expand now that former Time Inc. boss Don Logan has been elevated to co-COO of AOL Time Warner, overseeing AOL. Another name mentioned is Marjorie Scardino, who heads publisher Pearson.
"Don Logan will bring in someone he knows and trusts, a marketing and circulation expert," said Porter Bibb, managing director of Technology Partners.
The new AOL boss will succeed Bob Pittman, who got the boot from AOL Time Warner two weeks ago. Pittman, the empire's No. 2, had also run the flagging online company.
Word that Middelhoff could be heading over to AOL Time Warner surfaced yesterday after his ouster over the weekend from the German media giant that owns such properties as Random House and music giant BMG Entertainment.
Middelhoff, who had just signed a new contract, is expected to get a severance package valued at between $10 million and $20 million.
His name has been linked to AOL Time Warner because he is a friend of the media empire's chairman Steve Case. Middelhoff was an early believer in AOL and turned Bertelsmann's early investment in the company into $6.8 billion.
A more likely roost for Middelhoff is German telecom giant Deutsche Telekom, where he would replace ousted CEO Ron Sommer. But media sources were skeptical yesterday, claiming Middelhoff will have a tough time recovering from his ouster from Bertelsmann.
The high-profile media mogul was forced out after clashing with the low-key family that controls the privately held German company. They balked at his plans to take public the company that began nearly two centuries ago as a religious publisher.
His ouster follows the firing of AOL Time Warner No. 2 Pittman and Vivendi Universal's Jean-Marie Messier and spotlights the difficulties media execs face in making good on the promise of fusing old and new media.
"This business has gotten more challenging, said Michael Wolf, head of McKinsey's global media practice. "CEOs are under more pressure to deliver operational results rather than making major acquisitions."
Sources said Middelhoff told the Bertelsmann board that he was being lured by Deutsche Telekom, even though a concrete offer may not exist.
"His career is over," said a source close to the company. "Middelhoff was shocked by his ouster."
http://www.nydailynews.com/business/story/6949p-6467c.html
