55 posts and columns on Randy Falco
BoomTown Will Have What Greg Coleman's Having: HuffPo Ad Sales Head Scores Big Bucks Twice From AOL's ArmstrongAOL CEO Tim Armstrong is the gift that keeps on giving–at least to Greg Coleman. He’s the Chief Revenue Officer at the Huffington Post–for which the Internet giant just forked over $315 million to acquire–who will get a multimillion dollar payout from the deal. Except Coleman is the same guy whose three-year contract as AOL’s onetime sales head was paid out by Armstrong after he was replaced after only three months.
Want to make money? Become a former AOL executive. The Web publisher paid out $28.4 million in cash and stock to four top executives it replaced last year. It will pay some of them millions more this year.
Little by little, AOL is offering investors more and more details about what the company will look like after it spins off from Time Warner. But the more AOL discloses, the less attractive the company looks. The newest problem: AOL’s steady flow of Google money is going away.
AOL Spinoff Approved Last Night by Time Warner Board: Here Are the Inside Details (Not in the Press Release)While there were reports that the Time Warner board was meeting today to approve the spin-off of its AOL online unit, it actually gave the move an “enthusiastic endorsement” last night, according to sources. Time Warner just put out the press release about the move that would make AOL an “independent, publicly traded company.” But, several sources with knowledge of the situation said AOL CEO and Chairman Tim Armstrong is set to make massive changes to the structure of AOL, sweeping aside its current set-up almost completely. That includes keeping the access business, which many thought would be sold off and putting many of the companies it has recently acquired–including its pricey Bebo social networking site–in a separate ventures unit, which will try to attract outside investment.
According to an internal memo obtained by BoomTown, Joanna Shields, who came to AOL via its troubled acquisition of the Bebo social-networking site, will be returning to London to spend more time with her family and to “pursue entrepreneurial interests.” Until recently, People Networks has been the third leg of the Time Warner-owned online site’s businesses, which also include advertising and content. But under new CEO Tim Armstrong, who was one of the top sales execs at Google, AOL is largely abandoning its business-unit approach for a more functional and centralized structure.
Platform-A President Greg Coleman–the former Yahoo advertising sales exec who came to AOL only three months ago–is leaving the company, sources said, as new CEO Tim Armstrong remakes his top staff in preparation to spin off the Time Warner online unit. Coleman was brought to AOL by former CEO Randy Falco in February, replacing Lynda Clarizio, and will be replaced by a Google ad exec, Jeff Levick. Armstrong, sources said, announced the moves to his staff tonight, right after he told Coleman about his decision late today. Also out: CFO Nisha Kumar, who came to AOL in early 2007 from Time Warner, owner of the online unit.