This week, Romanian business website Daily Business announced that Valentin Oeru (Managing Director at Boom Advertising/Netbridge Investments) was leaving the company.
24 hours later, AdPlayers.ro wrote an article stating that Oeru had “fun” when he found out about this information but he didn’t deny it.
In case you wonder, here is a quick overview of what really happened behind the scenes:
– Mr. Cristian Petriceanu (GM of Netbridge Investments) was out on a holiday outside Romania. He was the man keeping Boom together but his point of view sometimes differs from Mr. Siminel Andrei (head of NCH Advisors);
– Valentin Oeru has a choleric temper with phlegmatic influences so the latest financial updates at Boom are not keeping him calm. Mr. Siminel Andrei is very passionate about the Internet and likes to be involved in the decision making process. He is sometimes involved in all kind of micro-management tasks regarding his online projects;
– the financial crisis was very tough on Boom as they were the biggest player on the market. The first signs started to appear in October 2008 and November/December 2008 were the hardest months. They figured out that they don’t have enough money to finance the business so they canceled all their contracts with the websites and proposed new deals (no money guaranteed, 60-40% or 50-50% open deals).
– by the middle of January 2008, Boom lost the biggest websites in their portfolio and their market share reduced dramatically. Last week, Valentin Oeru find out that his portfolio for 2009 is reduced to 50% and that because of the EUR/RON exchange rate he doesn’t have enough money to pay his guarantees.
-Mr. Siminel Andrei convoked a crisis meeting and told Valentin Oeru that they need to restructure the team and dramatically cut costs (they have almost 40 people compared to ARBOmedia’s 20 guys). Only in January, Boom lost 500.000 EUR (est) but the problems are more severe. Boom was also the sales agency for the NCH online companies so their crash had a dramatic impact on the cash flow; this is why there is a list of people to be fired at Boom and this is how the rumour that Valentin Oeru will leave the company was out on the market.
Of course, I’m always eager to read the official story so maybe we’ll get lucky next week. One thing is for sure: someone will leave Boom Advertising.