Marius Pahomi writes a post about Acasa.ro and their plan to close down the e-mail service. Behind this decision is a real need for liquid cash and a strong pressure to cut costs in 2009.
What happens right now in this online media group:
- - project managers are forced to cut costs (the case of Acasa.ro);
- - some people will be laid off and some projects will be closed down;
- - no new projects and no investments (only PR);
- - Boom Advertising is forced to terminate all the guaranteed contracts and to impose new conditions with less commitment;
- - growing tensions in the group between Boom Advertising and their own publishers: iMedia, Activesoft, etc (the need for cash is severe);
- - growing tensions among the employees – some of them already left, many of them think they’ll need another job during the crisis;
- - the psychological impact of the economic crisis has a bigger impact on Netbridge as the stakeholders are U.S. based and they need to force an exit (after 8 years of online investments);
- - the Internet companies are not self-sustainable – the costs are too high for some and during all these years they were funded from other operations (mainly real estate).
I remember this interview with Siminel Andrei (NCH administrator in Romania) saying something interesting about his business projects on the Internet: 10-20 ”will be successful, the rest – bankrupt”:
Reporter: How do you see the portfolio evolution of companies that you run?
Siminel Andrei: In general, bankruptcy. I never said that will soon bankrupt. From tens of thousands of sites and ideas on the net from Romania will be successful 10-20; or, statistically, the chance that some sites get in this category is small. So the chance to give bankruptcy is high for any site…
And this was before the crisis.
Please note that NCH Balkan Fund, L.P. AUM $540M is closed to new capital and New Century Holdings XI, L.P. AUM $1,375M is open to new capital only to the extent of replacing annual redemptions (this fund was NCH’s “flagship fund” with a broad-mandate portfolio in Romania also; listed equity with small allocations of fixed income, private equity and real estate”).
Something stroke me when I was reading Boom’s blog – Mihaela Grafu’s favorite book is “Anna Karenina” and her favorite quote is mentioning something about failure (eg: “failure makes you stronger”).
This made me think if Anna Karenina’s suicide was a failure or a success? What should I understand from this post? Do you plan to commit suicide or just to fail?
Free tips for Boom’s PR department:
- - use more words like “failure” and subliminal words connected to death/suicide in a motivational post written during this economic crisis;
- - use more phrases like “going/want to learn” when you want to say that you already have the experience;
- - react to blog posts like this one; you’ll not seem desperate and you’ll not confirm the problems you’re facing;
- - don’t check out your organigram and make sure you’re placing the right people in the wrong department;
- - if an employee has so many hobbies and so many things to do besides work it means that either is working part-time either he deserves a bonus for mega-efficiency;
- - make sure that the next profile you’re going to write you’ll mention “Titanic” as “favorite movie” or “George Bush” as a personal model;
- - don’t read my blog, it will just make you angry.
PS: for my other readers at Boom, please don’t take my previous post (or this one) very personal. I still like you guys and remember that we’re still togeher but if [some of] you plan to commit suicide, we won’t be in the same boat with you. Let’s say I’m more of a Chuck Norris fan (see the movies below) 
Continue reading ‘Boom: Anna Karenina died at the end’
Live blogging from Zilele Biz (Radisson SAS hotel in Bucharest).
Invited speakers for this panel
- Felix Tataru – GMP Bucharest
- Stefan Iordache – Leo Burnett&Target
- Bogdan Prajisteanu – MEDIAEDGE:CIA
- Manuela Necula – Ogilvy Group
- Carmen Tanasie- CEO, OmnicomMediaGroup Romania
- Teddy Dumitrescu – PUBLICIS ROMANIA
- Maria Tudor – Zenith Media Romania
This talk is moderated by Serban Ciusca (Tabasco & Ciusca).
By far, the most interesting panel for the marcomm industry this year, since the main focus is on the financial crisis, market growth in 2009, budgets, research, efficiency, leads and results. The speakers seem to be optimistic but worried
Later edit… or “worried but optimistic”, I’m not sure yet
Holidays are coming and I see a new website with promotions and special deals. TotulRedus.ro, managed by Rares Anita is the latest project Antena3 S.A. and way to fun to keep out. Although in beta and recently launched, the website already has over 170 special offers and the number is increasing every day.
Losing 7 people (all experienced and precious) made things not to seem very safe at Boom at the end of this year. Their first move is to restructure their portfolio because right now they don’t have anymore the sales force to sell all their websites. They said that every website will receive a new contract for 2009 and that they are not going to offer guarantees anymore. The figures for Q4 don’t look very good and the fact that Boom is owned by an American investment fund is going to count a lot in the chase for real cash.
This means that all their sales team is under construction and this will be their greatest challenge for 2009 (to survive and keep as many websites as possible in their portfolio). This is probably the worst crises for them (even more severe than the one they had a few years ago when Orlando Nicoara left the company). Continue reading ‘Boom lost 7 people from the sales department, preparing for recession’
