AllThingsD » FIM

Is There a Myspace Mafia, Too? Because Leaving Seems to Have Paid Off for Many Ex-Execs.

Kara Swisher — Mon, 13 Jun 2011 18:28:02 +0000

When the selling of Myspace winds down in the next week or so, it’ll probably attract a spate of comments about what a failure the whole social networking enterprise turned out to be.

And — especially when you recall what a Web phenom the social networking site was before it got blown out of the water by Facebook — it was.

That is, unless you think of the mob of former execs who have worked at the company over time, many of whom have moved on to some more golden opportunities after leaving the News Corp.-owned property.

That includes, most recently and notably, former sales head Michael Barrett, who is about to score big as CEO of AdMeld, which is reportedly in the process of selling to Google for $400 million.

Also a big winner: Former Myspace CEO Owen Van Natta, who was fired from that job in one of its many putsches and who quickly rebounded to a top job at online gaming powerhouse Zynga.

So, while it is one of the more overused memes of Silicon Valley, the “mafia” analogy — which has been applied to fertile entrepreneurial breeding grounds such as PayPal, before its acquisition by eBay — is useful when thinking about Myspace.

It is also a good thing to keep in mind about any tech company that goes off the rails: There might still be a silver lining, even if the start-up never sees the light of day again.

As proof, herein is a list I created after pinging a bunch of former Myspace folks:

Jason Oberfest: Former SVP of business development. Now, VP Ngmoco, which was sold to Japanese gaming giant DeNA for $400 million last year.

Dmitry Shapiro: Former CTO, Myspace Music. Now, at Facebook competitor Altly.

Adam Bain: While at Fox Interactive Media, he ran the ad platform for Myspace. Now, head of sales at Twitter.

Jeff Berman: Former president of sales and marketing. Now, GM of the NFL’s digital media unit.

Jason Hirschhorn: Former co-president and chief product officer. Now, on MGM board, angel investor, and there are rumors of him working on a curation start-up.

Amit Kapur: Former COO. Now, CEO, Gravity, an information filtering service start-up.

Chris DeWolfe: Co-founder and former CEO. Now, CEO, MindJolt, an online gaming roll-up.

Ross Levinsohn: Former president of FIM, he was integral to buying Myspace. Now, EVP of Americas unit, Yahoo.

Mike Lang: Former News Corp. strategy exec also involved in Myspace purchase. Now, CEO, Miramax.

Aber Whitcomb: Former CTO. Now CTO, MindJolt.

Jim Heckman: Former chief strategy officer of FIM. Now, CEO of 5to1, recently sold to Yahoo for $25 million.

Dani Dudeck: Former communications head. Now, PR head at Zynga.

Travis Katz: SVP of international. Now, CEO of Gogobot, a social travel start-up.

Richard Rosenblatt: Former CEO of Intermix Media and Chairman of Myspace, he sold it to News Corp. Now, CEO of Demand Media.

Angela Courtin: Former SVP of marketing. Now, EVP at Aegis Media.

These folks should be on the call list of whoever ends up buying Myspace. Last week, I wrote that an investor group, including Activision head Bobby Kotick, is now in the lead for the deal.

As an update, according to sources, Kotick has gotten clearance from Activision’s major shareholder Vivendi to do the Myspace transaction as a passive personal investment.

Exclusive: Yahoo Courts Former News Corp. Digital Exec Ross Levinsohn as U.S. Head

Kara Swisher — Tue, 26 Oct 2010 19:11:27 +0000

He’s baaaaaack.

Former Fox Interactive Media President Ross Levinsohn, that is, who is the top candidate to replace Hilary Schneider as Yahoo’s North American head, according to several sources close to the situation.

While the deal is not completely struck, sources said Levinsohn is very close to taking the job.

Sources added, if he does, he is likely to remain living in Los Angeles, where he has long been located. Yahoo has a large facility in Santa Monica.

The move is a bold one for Yahoo CEO Carol Bartz, who desperately needs to bring in major Internet talent to the company to shore up her worrisome inexperience in the space.

Yahoo has been rocked by management turmoil–especially in the media and advertising unit–and also troubling weakness in revenue growth and innovative spark.

Levinsohn, one of the more colorful of Web personalities, certainly has a spark.

Levinsohn is currently an investor at Fuse Capital, which funds digital media and communications start-ups.

But sources said he has been itching to get back at a big company with scale in the digital media business and has been interested in Yahoo for some months.

At Yahoo, presumably, he will have purview over what Schneider did (and perhaps more), including the Silicon Valley Internet giant’s powerful media properties and its large advertising sales force in the U.S..

It’s likely Yahoo will hire a major ad sales exec to work under Levinsohn, and sources said the company has been in contact with several prominent execs to fill the slot left open with the March departure of Joanne Bradford to Demand Media.

Besides Schneider, also among the recent departures in the unit Levinsohn would run: VP of Media Jimmy Pitaro, who went to Disney, and U.S. Audience head David Ko, who moved to social gaming phenom Zynga.

Until now, Levinsohn is best known for his stint running digital operations for News Corp.’s then FIM unit.

It was at FIM that he rose to prominence after he bought MySpace, the social networking site that was once the hottest property on the Web.

At the time, Levinsohn and other execs also struck a gigantically lucrative advertising search deal with Google that garnered MySpace huge revenues.

After leaving News Corp. after repeated clashes with MySpace Co-founder and CEO Chris DeWolfe, he partnered with former AOL CEO Jon Miller in another investment company, Velocity Capital.

Ironically, both Miller and Levinsohn were the top choice of billionaire shareholder activist Carl Icahn as the execs he wanted to run Yahoo when he was agitating for change there a few years back in the midst of the failed takeover attempt by Microsoft.

When reached today, Miller–who now is the Chief Digital Officer of News Corp.–declined to comment on his former associate’s job prospects.

But he said: “If Yahoo is so lucky to get Ross, it would be great, because he is one of few people who understands all media.”

Indeed, although Levinsohn is better known as a dealmaker and media exec than as a sales expert, although he did manage digital advertising properties at FIM.

Previous to FIM, Levinsohn ran Fox Sports Interactive Media. He has also worked at the AltaVista Network, an early search pioneer, CBS Sportsline and Time Warner’s pay cable giant HBO. In addition, according to his bio at Fuse.

He also worked at Saatchi and Saatchi and in sports management and marketing with ProServ and Lapin and Rose Communications.

Yahoo declined to comment about the possible appointment of Levinsohn.

(And let’s hope Yahoo–especially the hip-shooting Bartz–doesn’t announce his arrival by also unfairly kicking former execs in the media and advertising unit in the teeth, as has been cloddishly done already too many times.)

BoomTown has also contacted Levinsohn via email and phone and has not heard back from the typically voluble exec.

But you can enjoy his stylings here, in a video interview I did with him in 2007:

[ See post to watch video ]

Photobucket Layoffs Today: One-Third of Staff Let Go; Other FIM Units Also Impacted

Kara Swisher — Thu, 25 Jun 2009 21:19:20 +0000

The layoffs at Fox Interactive Media moved on to Photobucket today, as one-third of its staff of about 120 were let go, sources close to the situation said.

The photo- and video-hosting service was bought for $250 million in mid-2007 by News Corp. (NWS).

A FIM spokesperson confirmed the layoffs after being contacted by BoomTown, but declined to give specific numbers. But sources told me a total of up to 75 people were fired.

“As part of our continuing review of each of the FIM business units, employees were informed of job cuts today at several of our sites. We made these cuts to ensure that our resources are aligned properly with our business goals, and at a scale that will enable us to operate as efficiently as possible,” said the FIM spokesperson.

It is all part of a series of job cuts that are now hitting FIM properties other than MySpace.

The social-networking site has seen massive layoffs over the last two weeks, both in the U.S. and internationally.

Photobucket was hardest kicked, with 35 people fired, while other properties, such as the IGN videogame and entertainment unit, had the other layoffs spread among them.

Cuts at IGN, for example, were minimal, and it was also hiring in other parts of its business.

FIM’s whole structure itself is undergoing a shift, along with a likely name change, as BoomTown previously reported.

(Full disclosure: News Corp. owns Dow Jones, which owns this site.)

Another Top Exec Gone From FIM, as It Readies a Name and Structure Change

Kara Swisher — Mon, 22 Jun 2009 21:00:58 +0000

Mike Angus, EVP and General Counsel of Fox Interactive Media, is departing that job for another in New Corp. (NWS), as new digital head Jon Miller continues to reshape the division.

Last week, BoomTown reported that FIM CFO Ed McKenna was leaving his post and also the company, part of many changes taking place related to News Corp.’s digital properties. (News Corp. owns Dow Jones, which owns this Web site.)

It’s all part of a major rejiggering of FIM, which came into being almost four years ago, although not an elimination of the unit, as has been reported.

More likely, it will include a name change–perhaps to the Digital Media Group–as well as a much streamlined organization that gives more autonomy to FIM’s Web, online advertising and publishing technology units.

The largest of those Internet sites in FIM is, of course, MySpace.

Since Miller arrived in the early spring, he has focused on fixing the troubled, but still huge, social-networking site.

He quickly replaced its co-founder and CEO, Chris DeWolfe, with new managers.

Those execs, led by former Facebook exec Owen Van Natta, have done massive layoffs at MySpace recently and are now beginning a major overhaul of its product, which needs to innovate after a fall-off of growth and engagement.

“In a lot of ways, FIM has become an artificial construct and a lot of the infrastructure it has created should be out in the individual businesses,” said one person close to the situation. “So, since it is not really an operating unit, it will be taken down to the minimal size to make it work.”

That apparently means it does not need a separate CFO or even a general counsel.

Currently, there are about 100 FIM-only employees, mostly in human resources, accounting and legal. Some of those will likely be farmed out to the units they primarily service or be let go if those units decide they do not need the staff.

The original idea of FIM was to create a unit to house most of News Corp.’s standalone digital units, including MySpace and IGN videogame and entertainment sites, and to have common financial, legal and even ad sales execs to serve them.

The concept is that they all had tech, legal, policy and synergistic reasons for being together.

Said a News Corp. press release from July 2005, which announced both the Angus and McKenna hires:

“News Corporation today announced the formation of Fox Interactive Media (FIM), a new unit that will leverage the strength of Fox’s distinctive entertainment, news and sports brands across the Internet to offer a richer online experience to its millions of users.”

That construct, said many people I interviewed inside and outside News Corp., was built to accommodate a much larger unit, with additional large acquisitions after the MySpace one.

Those never happened, although News Corp. was in many such talks with giants such as Yahoo (YHOO), Time Warner (TWX) online unit AOL and Microsoft (MSFT) about trading assets.

“Over time, FIM became more like a shadow government,” said one person familiar with the situation. “Now, it makes sense for the properties to govern themselves, with a lot less meddling and let them rise and fall on their own.”

Many News Corp. sources point to the success of premium video service Hulu, which is run as a joint venture with GE (GE) unit NBC Universal, as being managed relatively autonomously by experienced Internet execs with less corporate involvement.

The result has been a popular and fast-growing site, which has gotten kudos for its innovative consumer offering (although it is still working on finding a highly lucrative business model).

Does that mean that some units, such as MySpace, could even be spun out again?

Doubtful for now, said several sources, but still a possibility.

In any case, the idea of a corporate layer over corporate units within a larger corporation does seem less than fleet in the faster-moving Web 2.0 world.

As to the new name of the unit, besides the chief digital officer title, Miller also was given the title of chairman and CEO of the newly created News Digital Media group.

Therefore, several sources said that the units could be under a simpler and lighter Digital Media Group umbrella.