Blog Post

Dow Jones Reorg: Crovitz To Lead New Consumer Media Group Including WSJ

Updated: Dow Jones is reorganizing scant weeks after Richard Zannino succeeded Peter Kann as CEO. The move shifts from organization by distribution to a focus on markets. The three new divisions: consumer media, community media and enterprise media. As expected, Gordon Crovitz assumes responsibility for the Wall Street Journal brand, now known as the Wall Street Journal Franchise; The WSJ is just part of his new portfolio as president of the new Consumer Media Group and EVP of Dow Jones; the Consumer Media Group also includes Barron’s, MarketWatch, Smart Money and other consumer ventures.

Update: Analyst call: Zannino: “This new structure is a significant first step in transforming
Dow Jones from what it has been — a channel-focused publishing company — into what it must become — a franchise, market, and customer-focused media company.”
— The new structure cuts 20 net positions with savings estimated at roughly $8 million a year but there will be a one-time charge of about $14 million to cover the re-org costs, severance, etc.
— Based on the posting of financials organizaed by new segments, Enterprise will contribute the most income on the least revenue — and with the highest operating margin, 24.1 percent. By comparison, Consumer contributes nearly three the revenue but has a negative operating margin.
— The changes include shifting online subscription revenue from information services revenue to circulation and other revenue.
Press release | Webcast (archived) | Q&A only (mp3) Zannino prepared remarks | Financials organized by new segments