Usually when a chief executive is replaced against his will, it’s because something isn’t going right. In this case, it sounds like it was going right with Jon Miller — AOL was making its numbers, the changes were being well received — and Randy Falco is being brought in to make it go even better. But as bright as Jeff Bewkes is and as capable as Falco is by most accounts, can AOL afford the kind of momentum stall that can accompany a major change in management? How quickly can Falco adjust to the rapid pace at today’s AOL — and to the differences between the online/mobile world and the TV world where he has spent several decades? (Granted, he has been part of a rapidly changing envionment at NBCU, particularly these past few months.) Beyond the surprise of the move — a few months ago when rumors were rampant folks were ready for the news but this caught them off guard — and concern about their own roles, with the emphasis on the operational AOL employees have to be wondering just how much of his G.E. org background Falco will bring with him. Finding a way to keep the momentum going strong despite the inevitable fallout from the switch and his need to start from scratch may be Falco’s first operational challenge.
One other thought as I look back on the day’s events: the idea that hiring Falco is a coup for AOL and TW makes sense from one perspective. But think about it from the AOL side, where advertising is growing in double digits and other indicators are up — and you can see why they might think the AOL job is the coup for even one of the most senior executives in TV land.
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