CMP: The Official Announcement
FOLIO: reported today United Business Media's decision to split CMP Technology into four â€śintegrated media companiesâ€ť in order to â€śbetter align CMPâ€™s products with its customers.â€ť In addition, UBM named four CEOs for the respective companies, and dropped the name CMP altogether.
Some FOLIO: commenters have called the restructuring a â€śnon-announcement,â€ť claiming that nothing has really changed.
What do you think?
Here's the press release in its entirety:
United Business Media Transforms CMP into Four Independent Media and Information Services Businesses
News Release Issued: February 29, 2008 3:00 AM EST
United Business Media Transforms CMP into Four Independent Media and
Information Services Businesses
New market-focused agile businesses to leverage UBM global resources and infrastructure
LONDON, Feb. 29 /PRNewswire-FirstCall/ -- United Business Media plc (UBM) today announced that it will restructure CMP Technology (CMP) into four new, market-focused businesses. As agile, independent organizations, each new business will be well positioned to meet the changing needs of the professional communities and technology markets it serves. The creation of these market-focused businesses is the next step in CMP's strategic transformation into a next generation media company.
In the last three years, CMP has significantly rebalanced its businesses, investing in the development of new products and services (including bMighty, Designlines, eXalt, InternetEvolution, MTC, myGDC, Teardown TV and TechWeb Performance Marketing) and its expansion in international markets. UBM has supported CMP's evolution with the investment of over $225 million in eighteen acquisitions, particularly events and business information products.
UBM's 2007 results, released today, demonstrate the development of CMP's businesses from largely print publishers (75% of revenues in 2004) into integrated media businesses that offer their customers a full suite of marketing solutions, including events, online and print products, as well as data-based workflow tools and services. In 2007, CMP generated 34.2% of its revenues from events, 20.2% from online products, 7.3% from workflow tools and business information services, and 38.3% from print products. The proportion of revenues contributed by events and services will rise in 2008 as result of the recent acquisition of Semiconductor Insights, Think Service Inc. and Vision Events. In 2007, CMP profits rose 30% to $50.1 million, with margins reaching 15.6%, the company's highest margins for five years.
The four new businesses and their respective Chief Executive Officers are noted below; each CEO will report to UBM Chief Executive, David Levin:
TechWeb, formerly CMP's Business Technology Group, will be led by Chief Executive Officer, Tony Uphoff. TechWeb, the global leader in business technology media, is an innovative new business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market.
Today, more than 10 million business technology professionals actively engage with and rely on its global face-to-face events: Interop, Web 2.0, Black Hat and VoiceCon; online resources: The TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet and MSDN Magazines. TechWeb also provides end-to-end services ranging from next-generation performance marketing, custom media, research and analyst services. 2007 proforma revenues for TechWeb were $148 million. For more information, visit http://www.techweb.com/aboutus.
Everything Channel, formerly CMP Channel, will be led by Chief Executive Officer, Robert Faletra. Everything Channel is the global leader in Channel execution and the one stop shop for the indirect sales channel that drives 75 percent of technology sales throughout the world. High-tech suppliers and Solution Providers turn to Everything Channel to manage and accelerate their business, using its comprehensive portfolio of channel solutions which include the ChannelWeb online network, magazines (CRN and VARBusiness), events (XChange and Vision), workflow tools (MTC and eXalt), tele-recruiting, sales support, marketing services, research and education (IPED). 2007 proforma revenues for Everything Channel were $73 million. For more information, visit http://www.everythingchannel.com/ and http://www.channelweb.com/.
TechInsights, formerly CMP's Electronics Group, will be led by Chief Executive Officer, Paul Miller. TechInsights is the daily source of essential business and technical information for the electronics industry's decision makers -- the Creators of Technology -- who define, develop, and bring to market the electronic products that improve our lives. TechInsights uses that unique and privileged access to connect its customers to these decision makers at the right time and at the best ROI. With global market leading brands such as EE Times, Semiconductor Insights, TechOnline, Embedded Systems Conferences and Portelligent, TechInsights is the leading dedicated information and services business serving the global electronics market. 2007 proforma revenues for TechInsights were $83 million. For more information, visit http://www.techinsights.com/.
Think Services, formerly CMP's Game, Dr. Dobb's and International Customer Management Group, will be led by Chief Executive Officer, Philip Chapnick. Think Services connects specialized communities via interactive media, educational events, consulting, training and certification. The business' flagship products include the Game Developers Conference, the Webby Award- winning Gamasutra.com, the International Customer Management Institute, the Help Desk Institute and Dr. Dobb's Journal. 2007 proforma revenues for Think Services were $61 million. For more information, visit http://www.think-services.com/.
Each business will have the freedom to develop business models, audience development initiatives and international programs that best fit its specific marketplace while also taking advantage of UBM's global footprint to support its international expansion.
The new businesses will share support functions and infrastructure, including finance, IT services, legal and global account and sales management. The central functions will become part of UBM's US infrastructure with Scott Mozarsky, currently CMP's Chief Financial Officer, taking the role of Chief Operating Officer. Scott will also serve on the Board of each business.
David Levin said:
"This is the next step in the strategic evolution of how we serve our technology market customers -- and we're doing it from a position of strength.
"As our strong and improving results for 2007 show, each of the operations within CMP has been successfully serving its specific markets, but going forward, as independent and focused businesses, they will be able to get even closer to their audiences and customers, developing products and services for these communities faster and with focus.
"At the same time, each business can take advantage of being part of UBM, a $2.5 billion corporation with a global infrastructure to support international expansion of their leading brands and content and a demonstrated track record of acquisitions and investment in new products."
About United Business Media Plc
United Business Media Plc is a leading global business media company. We inform markets and bring the world's buyers and sellers together at events, online, in print, and with the information they need to do business successfully. We focus on serving professional commercial communities, from doctors to game developers, from journalists to jewellery traders, from farmers to pharmacists around the world. Our 5,000 staff in more than 30 countries are organised into specialist teams that serve these communities, helping them to do business and their markets to work effectively and efficiently.
For more information, go to http://www.unitedbusinessmedia.com/.
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