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Former Arbitron Man Replaces Ertugrul as Phorm CEO

July 15 2015

ISP-level ad targeting company Phorm has announced change at the top as it enters a new phase in its development. Out goes company founder and long-time CEO Kent Ertugrul, along with CFO Andy Croxson, and in comes former Arbitron exec Timothy Todd Smith as the new Chief Exec.

Kent ErtugrulPhorm says the changes are intended 'to position it to take advantage of the opportunities which have recently opened up in the US market'. Ertugrul (pictured), who is currently based in Singapore, and London-based Croxson, step down with immediate effect and will 'pursue other business interests' but 'remain strongly supportive of the Company's continued progress'.

Phorm has wandered the world in search of fertile ground for its ad targeting and personalisation software since encountering privacy issues in the UK in 2008, and just last week reported progress in the US and Russia, following up June's announcement of its customary huge operating loss - in 2014 it lost $37.9m (2013: $35.1m) on revenues of $351k (2013: $280k). It continues to work with partner firms in China but has closed its Turkish operations, previously considered its most likely source of a first profit.

Smith, who is 51, worked at radio ratings giant Arbitron from 2006 to 2014, for the last three years in the role of Chief Strategy and Business Development Officer - and played a significant role in the sale to Nielsen. Earlier he spent six years at software firm Manugistics, Inc. as General Counsel and SVP. He holds a B.Sc. in Administration of Justice from Penn State University and a Juris Doctorate, with Honours, from Rutgers University School of Law.

Smith's appointment as Phorm CEO remains subject to due diligence and approvals. NED Lex Fenwick will assume the role of Executive Chairman with immediate effect pending Smith's formal appointment.

Eturgrul said of his resignation: 'I have devoted many years of my life to building this business to its current stage. As building sales and the development of key business partnerships, particularly in the US, becomes paramount, I am delighted that the Company is securing the services of a candidate of Timothy Smith's calibre. I wish him the very best and look forward to the Company's continued progress'. Smith comments: 'I am very excited to be joining Phorm to take it to the next level, building on the outstanding technology foundation that has been established to date'.

Ertugrul and Croxson will receive six months' salary in cash and a share based payment in respect of a further six months. The cash amounts to US$275,000 and £155,000 respectively, and the two will get 10m and 4m new ordinary shares respectively, with restrictions on rapid sale.

It's the end of a long saga for the relentless Mr Ertugrul: we take our hats off to him and wish him many good nights' sleep now that the firm's accumulated deficit of $302,264,942 is no longer his specific responsibility. Meanwhile the company could be on the verge of some significant revenue - 'though we have said that before - and we await, and will report on, further news of its progress in the three superpower states it now regards as its focus.

Web site: www.phorm.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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