paidContent.org - The Economics of Content

Current Story

Roo Restructuring: Three JumpTV Execs Jump On Board; Layoffs; IPTV Focus

By Joseph Weisenthal - Mon 14 Jan 2008 09:20 AM PST

New York-based Roo Group, the OTC-traded and troubled video aggregator and IPTV provider in which News Corp has a stake, has announced restructuring plans including closing the business solutions division, laying off employees, focusing on international IPTV and bringing on new management. Recall that in December, the company announced that all of its independent board members had resigned and that JumpTV executive Kaleil Tuzman would invest in the company and take the reins as CEO. The restructuring is Kuzman’s first big announcement since assuming the post:

-- Management: Tuzman has taken three of his JumpTV (TSE: JTV) colleagues to come with him to Roo. Sean Coutts, Nigel Regan and Ivan Dario Arias, all three of whom were formerly at JumpTV, will be heading up units. Coutts will be in charge of Global Network Operations and Product Management, while Regan and Arias will head up the EMEA and Latin American divisions respectively.

-- Cost cutting: Roo has eliminated its business solutions unit, laying off 10 people in the process. In December, the company said it would lay off around 40 employees, and it appears that these 10 people are included in that number, since the newest announcement pegs the total job eliminations at 43. The company decided to quit the business solutions division because it was not making money and still in the R&D stage. It also says it hopes to reduce infrastructure costs, perhaps by developing or purchasing its own CDN infrastructure.

-- Focus: Going forward, Roo plans to focus on IPTV enablement, with an eye towards international markets, where it sees more promise for the industry. This is not a surprising path, considering the Jump-ificiation of the company. It also plans to move its headquarters out of New York by the end of Q1, though it didn’t designate a new location. A sales and development presence will be maintained in the city.

Full details in the release.

Posted in:

Tags: kaleil tuzman, roo group,

Check our our new Social Media Deals Report, which examines the categories, number and size of VC and M&A deals into social media

Related Research from Alacrastore.com

3 Responses:
  • From Matt Mon 14 Jan 2008 09:46 AM

    The ROO business Solutions Unit was basically Wurld Media who’s sale to Roo is now being investigated in a criminal lawsuit so no wonder the new CEO wanted to get rid of that hot potato .

    ROO paid 4.5 Million for Wurld Media last year so they have basicly wrote that sale off it seems .Notice there was no mention of Wurld media in this release .

  • From Erin Fri 18 Jan 2008 06:21 AM

    I agree with Matt.  I have researched this thoroughly as I worked in the same building as Roo business solutions.  I don’t know how you could write an article on this topic without mentioning Wurld Media at all.

  • From Joseph Weisenthal Fri 18 Jan 2008 03:06 PM

    Erin, Matt,
    Thnks. Should have made the connection here with the Wurld Media acquisition. We discussed the fallout from that buy here: http://www.paidcontent.org/entry/419-four-board-members-resign-at-video-aggregator-roo

Post Your Comment

Mobile Options

» Mobile App
» Mobile/WAP Site

Send a News Tip

About

paidContent.org, flagship of the ContentNext Media network, provides global coverage of the business of digital content.

Rafat Ali
Publisher & Co-Editor

Staci D. Kramer
Co-Editor

David Kaplan
Senior Correspondent

Joseph Weisenthal
Correspondent

Robert Andrews
U.K. Editor

Amanda Natividad
Editorial Producer

EconCeleb Conference - The Economics of Celebrity. July 23 at the Roosevelt Hotel in Hollywood

Featured Report - 2008 Social Media Deals Report

front page of report

The economics of social media continue to heat up, with ever more buzz created in new and growing market categories. This report examines the categories, number and size of investment and acquisitions into social media and the resulting value created from 2007 through 2008. Order your report today to analyze deals made by Yahoo, Disney, Google, AOL, CBS, Hearst, Microsoft and many more.

Learn more or purchase now.

New Media/Interactive Job Listings

Post Job
More Jobs

Generous Supporters