Hearst, the media company which has made a number of major digital moves in the last few years even as its traditional businesses are bleeding, will have a management change at the top: Victor F. Ganzi is leaving as president and CEO, reports WSJ, citing sources, and is expected to be succeeded, at least on an interim basis, by former CEO Frank Bennack Jr., who stepped down in 2002. No reason was given for Ganzi’s departure...more as we have more.

Update: It’s official .. Ganzi has resigned and Bennack, vice chairman of the Hearst board and chairman of the executive committee, is in as CEO on an interim basis while the board conducts a search. From the release:

-- “The reason for his resignation was irreconcilable policy differences with the Board of Trustees about the future direction of the company.”

-- “Hearst’s Board of Directors has formed a search committee to find a new CEO and plans to explore a full range of options to identify who will lead Hearst Corporation in a dynamic and evolving media marketplace.”

Update 2: From WSJ: A major cause of his departure was the board’s feeling that he didn’t pay it enough attention...members of the board felt they weren’t in the loop about what was going on.

Under Ganzi’s tenure, Hearst pushed further into making minority investments in companies like Fitch, Internet-video firm Brightcove and online-music service Pandora Media. The strategy had mixed results. More recently, Hearst invested $317 million in MediaNews Group Inc. as part of a 2006 deal.

BW: The board, populated by descendants of the founder, grew increasingly frustrated with Ganzi over his strategy to take minority interests in outside companies, particularly technology outfits with large potential upsides, rather than making bigger bets, the story says, citing sources.

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