The Unusual Story of How CMP’s Weitzner Ended Up at Rival Ziff

The departure of CMP Technology's former CEO Steve Weitzner to competing publisher Ziff Davis Enterprise as chairman and CEO has some in the industry scratching their heads.

It was only two months ago that Weitzner was named head of international M&A and business development for CMP's parent company, United Kingdom-based United Business Media. That left UBM CEO David Levin running CMP Technology in the interim (which continues).

"It's unbelievable that CMP let their former CEO walk directly to their major competition," one industry observer tells FOLIO:. "You never see this. The fact that they didn't protect their business implies that he didn't have a non-compete. If he didn't have a non-compete, he also didn't have a non-solicit. They often go hand-in-hand. Who's to say he's not prevented from soliciting the best talent from CMP? That's bad management."

What happened, one observer said, was that when Weitzner's predecessor, Gary Marshall, left the company in 2005, Weitzner took over as CEO without a contract. When he was shifted out of the CEO post, he began negotiating a separation agreement, and that process had apparently not concluded when Ziff came knocking, the source said. "They were offering a CEO the kind of agreement they give to junior editors," the source said. "Every company has every right to replace a CEO, but do it in a classy way. Do it in a way that preserves the integrity of the office."

The source said the loss of Weitzner follows a pattern seen with other CMP executives. "This has led them to have egg on their face," he said. "How they treated Steve is something that's going to have an effect on the search for a replacement--Steve was doing a good job. People loved him."

Another observer noted that the move makes sense for Weitzner. "He gets to be the top guy at ZDE," the source wrote in an e-mail to FOLIO:. "I'm sure CMP did not want him to go to ZDE, but when/if he is getting a chance to make some real money with a private equity employer, it is hard to counter."

A CMP spokeswoman declined to comment on Weitzner's departure, including specific questions concerning a non-compete clause, other than to say the company "wishes him well."

Time for Change

Weitzner himself declined to respond to direct questions about the nature of his departure, but he offered some insight as to why he decided to join ZDE. "I had a long and rewarding run at CMP, but it was time for a change," Weitzner said in an e-mail. Weitzner joined CMP more than two decades ago, and served a number of roles including associate editor, COO and CEO. "This was an opportunity to take the lead at a company that has only recently emerged from a corporate parent. All of the ingredients are here--great people, products and a long tradition of winning. But, we also have the opportunity to create an entrepreneurial startup environment and several successful entrepreneurs are on our management team."

As CEO, Weitzner oversaw a dramatic restructuring at CMP Technology in which the company laid off 200 employees last June, either folded or converted a number of its print titles to online, and acquired additional digital products, effectively shifting its focus to digital media. CMP Technology this summer also acquired a number of informational Web sites, including HowMachinesWork.com, and purchased Semiconductor Insights, a media and consulting services company targeting the global semiconductor industry, for $26 million.

ZDE, publisher of titles such as Baseline, CIO Insight and eWeek, was formed last June when Ziff Davis sold the group to Insight Venture Partners for $150 million. Weitzner says he is looking forward to further developing the company's stable of live events, e-seminars and virtual trade shows.

"Less well-known are the capabilities that ZDE has added through acquisition and merger over the last few years. Many marketers and advertisers will be aware of DevShed a leading network for software developers-but not everyone realizes that DevShed is an integral part of ZDE," he wrote. Weitzner believes that ZDE's Web Buyer's Guide, an information source for IT buyers and a service demand generation system for marketers, will "sit at the center of the ZDE offering going forward."

COMMENTS: 12

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what a joke this story is!

Submitted by Anonymous on Tue, 01/08/2008 - 18:23.

You'll be getting a ton of hits on this but sometimes that's not a GOOD thing. The cmpers (current and former are passing this around like popcorn. And laughing. First of all, as a former CMPer, I would be hard pressed to find ANYONE there (current or past) who thought Steve W. did even a mediocre job as CEO. The layoffs were no doubt foisted upon him by the parent company but a few calls to current and former staffers would have found that once the cuts were made CMP suddenly had a serious lack of online content and even they had to learn that you can't sell ads when you have no content. Weitzner, one might assume, could have guided smarter cuts. After the layoffs another 10-15 percent of staff left. So CMP ended up UNDERstaffed. He helped bury the Buy, Build, Sell trilogy that was CMP's valid claim to fame. Nice job by steve w though in leaking this to a gullible reporter. Soon he'll be weaving his magic for ZDE. Good luck with that.

Good luck to Steve for getting out

Submitted by Anonymous on Wed, 01/09/2008 - 11:00.

The last comment was a little harsh on Steve who was a nice guy in an impossible situation. The level of "leadership" below him was a joke. The company is full of print old timers who have no answers for a new world. Anyone with a clue has left on their own. I left before last year's cuts, but I can tell you it is not a case of CMP being understaffed, but rather having some of the worst talent in the industry on the business side. Don't be suprised if Steve does a good job and ZDE takes off. They are doing some innovative things and have some very good editors who have moved over from CMP.

Trojan Horse

Submitted by Digitalguy on Wed, 01/09/2008 - 13:24.

#1 got it right: Steve is a Trojan Horse, who will finally sink what's left of ZD to the bottom. The only question is how long the private equity hacks who hired him will take to lower the lifeboats.

A Trojan Horse?

Submitted by Anonymous on Wed, 01/09/2008 - 14:27.

If there is a master plan to infiltrate and sink ZD then Steve should bring some of the people from the channel group with him. That should do the trick.

A Master Plan??

Submitted by Digitalguy on Wed, 01/09/2008 - 15:54.

Master plan at CMP (UBM)?? But, you're right. And, we'll know Levin is (finally) up to something if Gary M. shows up on deck at ZD - reuniting 'the Dynamic Duo' that has skillfully sailed CMP into one financial iceberg after another.

A Coup for Ziff

Submitted by Ted Bahr on Thu, 01/10/2008 - 10:42.

Anyone at a Group President or above level (as I was at MFI in the 90s) knows that when Clive Hollick came in, the opportunity for an American manager to have ANY impact or say on ANYTHING went out the window. In fact, it's why I quit. From what I hear, Levin has continued the fine British art of micro-management, and you can and should blame them. The non-competes are tied to money. They probably didn't offer Steve a fair sum, and didn't have a contract done. To use a British term, "brilliant" move by Insight and ZDE to get Steve. United is screwed, my heart bleeds for them. Steve knows everything about what worked and what didn't work at CMP and now a re-energized Ziff will benefit from that. Steve is going to do a great job at Ziff, wait and see. Unlike you cowards, I'm signing my name

You got it wrong, Ted

Submitted by Digitalguy on Thu, 01/10/2008 - 15:11.

Kudos for your courage, raspberries for your take. The Brits don't micromanage. That was the problem: they let the inmates run the asylum. And Hollick was long gone by the time Weitzner took over. Knowing what worked at CMP was never the issue. Getting it done was. So that should answer your question on why Levin didn't want to spend another twopence on Steve's noncompete. "Brilliant," "Steve," "re-energized," all in the same sentence? You got 'em rolling in the aisles, Ted.

Siding with Ted

Submitted by blueliner on Thu, 01/10/2008 - 15:43.

It's not the Brits micromanage - it's that they bog you down with so much corporate crap that you have no time to run your business. They are beancounters. When we had budget meetings with Gary's team, Steve was the only one who really dug in with us, and the only one who really challenged us with any sort of understanding. I think he was able to do more for the company before he became CEO and had his hands tied. If Ziff lets him run the company, I think he'll do well.

Thanks Blueliner - I agree

Submitted by Ted Bahr on Thu, 01/10/2008 - 16:15.

Thanks Blueliner - I agree with your characterization - being bogged down with analysis is more accurate to say than micromanaging.

Breathe into the brown paper bag

Submitted by Greeley's Ghost on Thu, 01/10/2008 - 17:47.

For all the venom spewed here (with the exception of Ted) I don’t see a lot of answers to the problem. Jesus Christ could have run CMP and been org’d out after a while. It’s not a Weitzner problem. It’s not just a CMP problem. It’s a B:B publishing problem (publishing in general). You can’t maneuver a battleship like a Ferrari. The core of the problem, really, is IT. IT’s job in publishing houses is to build things. The web is now open-source and modularized and is fast obsoleting the traditional IT department. Editors and sales people can come up with the greatest ideas, but if you can’t implement them quickly using open source tools, you’ll never compete with the Vertical Nets of the world. Dave Strom blogged about this last year “Newspaper will never get IT right.” (http://strom.wordpress.com/2007/03/20/newspapers-will-never-get-it-right...) I don’t disagree about the Brits. Charles Dickens didn't live in a vaccuum.

No more cry babies, please!

Submitted by Digitalguy on Thu, 01/10/2008 - 22:16.

Beancounters—and proud of it. Lord Curzon invented red tape, and a Chelsea mum can only hope her son will grow up to be a chartered accountant. But, so what? The Brits did rule the world for 400 years. And, quit blaming IT. How many times have you heard publishers say, “geez, I gotta check with IT” before going to the bathroom? All these slick suits crumbling before some teenage geek who can correctly say the word “server.” Sorry, folks, but the CEO title means taking responsibility for results not making excuses for why there aren’t any. Sure, Gary started out with AA so he couldn’t help himself. Charles Gregson(his boss)was cut from the same cloth. But, Weitzner was an English major who worked his way up through editorial before joining the business side. What’s his excuse? Bad-news B2B? Don’t think so. None of these maroons took the Internet seriously until Larry Page and Serge Brin showed them what a REAL ad salesman was. And, most still don't get it. Who knows what Levin is thinking – probably thrilled to lose an expense item from his p&l. But, y’all have a point: he'll have to do better than pull more dead rabbits out of a hat if UBM wants the world to change in Manhasset.

Digital Guy == Analog Thinking

Submitted by Red Herring on Sat, 05/31/2008 - 09:25.

Hey Digital Guy, I've worked with tons of British contracts and subcompanies. They move like molasses and are always on either break or vacation. Yes! Hooray for Lord Curzon, king of bureaucracy and lover of businesses that move like a weapon in Dune. In speaking with a lot of ex CMPers, I side with Ted on this...