Rubicon Project’s president Greg Raifman is leaving the organization as section of a leadership team restructuring that will see 6 other executives go away the ad tech organization.
In an e-mail to employees, seen by Business enterprise Insider, Rubicon Job CEO Frank Addante stated that the reorganization finalized a streamlining system that the organization declared on November two, when it said it was minimizing 19% of its overall headcount — influencing about one hundred twenty five people today.
Raifman, who has been section of the company’s leadership team considering that 2013, will keep on being on Rubicon Project’s board of directors.
A spokesman for the organization declined to verify the names of the other departing members of the senior leadership team or comment any even more on the motives for the restructuring.
Addante said in the e-mail: “Our organization is strong and I am assured that this organizational construction will permit the organization to be much more agile, and let us to gain from bigger scale and collaboration with our buyers. These variations will let us to far better concentration our endeavours and I’m on the lookout ahead to the yr in advance. I am going to follow up shortly with much more data on the new go-ahead leadership construction.”
The Wall Street Journal to start with described in January that Rubicon Job had appointed expense bank Morgan Stanley to check out the company’s strategic alternatives, including a potential sale. The news was verified by Business enterprise Insider resources, although Rubicon Job has declined to comment on the appointment.
The departure of so lots of senior members of the Rubicon Job leadership team could indeed sign that the organization is lining alone up for a sale.
Possibly coincidentally (or possibly not), Rubicon Job also just lately up to date the “leadership team” segment of its web page to only contain its board directors, removing most members of the working day-to-working day management team, aside from Raifman and Addante.
The strong rumor at present swirling the ad tech group is that Rubicon Job is in talks to be obtained by a personal equity organization and taken off the community markets that have been so harsh to ad tech businesses. Normally, right after businesses sell to personal equity companies, the greater part of the senior management team go away the organization.
Rubicon Job declined to comment on these rumors.
The organization is owing to report its fourth-quarter earnings in the up coming pair of weeks, although it has still to verify the actual date of the announcement. Public businesses are likely to coincide large bulletins with their earnings stories. Sources explained to Business enterprise Insider the earnings announcement will come on February 28, although that was not verified by the organization.
In Rubicon Project’s 3rd quarter, the organization described a two% increase in income to $65.eight million, beating analysts’ expectations of $sixty two.9 million. Earnings-per-share, having said that, arrived down below analysts’ estimates — at $.07, as opposed to expectations of $.09.
The organization also reduced its guidance for the fourth quarter, blaming a “difficult” ad sector and admitting it had been sluggish to undertake header bidding, a preferred new promoting technological know-how that is boosting income for publishers.
The ad tech firm has had a tumultuous couple months. In January, Rubicon Job said it was closing down the division it created next its $122 million acquisition of “intent internet marketing” organization Chango in 2015, right after its functionality did not meet up with expectations. Individually, Business enterprise Insider also verified Rubicon Job had shut down a item affiliated with its 2014 acquisition of ShinyAds, a deal described to be value about $5 million.
Rubicon Job has also lost several essential executives in the last couple months including chief technological know-how officer Neal Richter, SVP of market development Jay Sears, and its senior vice president of world technological know-how partnerships Adam Chandler.
Before this month, Rubicon Job trader News Corp declared it was offloading its entire eight% expense in the organization, as AdExchanger described.
Rubicon Job CEO Frank Addante’s email to employees in comprehensive:
For the last 10 several years, Rubicon Job has been singularly targeted on automating, optimizing and monetizing the promoting sector. In that time, we have developed a technological know-how platform that incorporates customers and sellers of promoting for desktop display screen, cellular, movie, electronic out of dwelling, audio, and much more. What we have created is a Global Trade Marketplace – 1 that lets publishers, software builders and advertisers to gain from enormous scale, greater demand from customers from new markets and the option to achieve the much more than 1 billion individuals via the Rubicon Job Trade.
As an sector leader, we believe in constantly maintaining our eyes firmly targeted on what really matters – our team and our buyers. We are concentrating on our main organization strengths and mission which has resulted in a profitable organization, with almost $two hundred million in hard cash on hand, and ongoing sector share expansion and accomplishment of the organization for the earlier 10 several years. As section of positioning ourselves for ongoing accomplishment we will be asserting the ultimate move in our restructuring initiative—originally declared on November two, 2016—which will even more streamline functions, facilitate speedier final decision-making and permit the organization to be much more agile with innovation.
Currently, we are asserting a management restructuring that consists of the departure of seven executives from the organization, including Greg Raifman who will be transitioning out of his operational function as president, but remaining on the Board of Directors.
Greg has been a vital member of the Rubicon Job leadership team considering that 2013 and has helped manual us to the place we are now. Greg and I have been good friends for virtually 20 several years, and I look ahead to continuing that own marriage. Make sure you join me in thanking Greg and the other departing executives for their lots of contributions.
Our organization is strong and I am assured that this organizational construction will permit the organization to be much more agile, and let us to gain from bigger scale and collaboration with our buyers. These variations will let us to far better concentration our endeavours and I’m on the lookout ahead to the yr in advance. I am going to follow up shortly with much more data on the new go-ahead leadership construction.
We keep on being assured that the toughness of our quality technological know-how platform and our Global Trade Marketplace uniquely place us to earn in the sector and we be expecting these strengths to propel our organization to much better extended term expansion in 2017.
Make sure you really feel free to achieve out to me with any concerns that you may possibly have.