Sunday, December 07, 2008

Reading Fairfax's tea leaves

Reading between the lines of the latest reports, including comments from industry analysts, it seems there may be a fair shake up inside Fairfax Digital once McCarthy gets his feet under the desk. There's no doubt digital is the future of the business, but there's plenty of debate about the right strategic path to success in this format, and the right structure to pursue within the company.

Here are a few choice quotes.

Malcolm Maiden speculating on Brian McCarthy's brief as new CEO:
"[McCarthy's] elevation following Kirk's departure would resolve a talent overlap at the top, and he would have a brief to accelerate the integration of Fairfax and its new businesses, including its online division, Rural Press and the former Southern Cross radio network."
Jane Schultz and Nick Tabakoff quoting Macquarie Equities media analyst Alex Pollak:
"With respect to Fairfax's ongoing migration to digital, McCarthy was not in the forefront of the digital strategy while at Rural Press (possibly correctly) so it will be interesting to see whether and how he manages this critical process at Fairfax."
Andrew Main in the Weekend Australian (not online) quoting Greg Fraser media analyst at Shaw Stockbroking:
"After pointing out that Fairfax's 'undoubted local content goldmine' could in the right hands become a multimedia powerhouse, as long as Brian McCarthy can upskill himself in that area as soon as possible, Fraser's note ends on a school yard analogy. 'If FXJ was in a game of media bullrush, it would be the big fat kid that knocks a few of the skinny kids out of the way but eventually gets bowled over by its more nimble buddies before reaching the safety line. Lose some weight, FXJ.'"
So, will it be integration and cost cutting at Fairfax Digital?

1 comment:

The Worst of Perth said...

And Fairfax's newish Perth online is being flogged by the crappy West Australian's online. Can it continue?