Rumor: Sina Power Struggle Triggers Client Concern
Hexun IT, 3/24/08
According to an insider close to high-level management and the board of directors at Sina (Nasdaq: SINA), the recent reassignment of General Manager of sales, Zhang Yu, was made without prior consultation with Sina's board of directors. The source added that the move "was just a ruse to cover a disagreement between Zhang and Chen Tong (executive VP, responsible for content), both of whom advocate a 'content + sales' business model, and other executives over Sina's future business focus and development strategies." The source declined to reveal additional details, citing the need for discretion, as the matter involves business secrets related to acquisitions.
Insiders also claim that among the four sales directors under Zhang, three have said they "don't understand, don't accept, and don't agree" with Sina's reassignment of Zhang and have led the majority of Sina's sales people to take "sick leave". Reports from other insiders have said the south China office was empty, north China office has seen few people come to work, and the east China office, although less extreme in its reaction, has many staff who have expressed dissatisfaction with Sina's decision.
Chen Tong has been working at Sina for 11 years, and Zhang Yu 8 years, and the two are close friends. Industry insiders have commented that the two are a perfect match for a "content + ad sales" approach.
During interviews, managers at several global 4A ad agencies and multinational firms have shown concern over the news. One manager from a 4A ad firm commented, "Chen Tong amassed rich experience through management of World Cup content, cooperated successfully with Zhang Yu in sales, and achieved very positive results for advertisers. Chen is also very influential with many clients, so if both of them left, and no suitable successors were quickly found, advertisers would worry about Sina's implementation ability, especially at this crucial time before the Olympics.
Editor's Note: Several other sources suggested the reassignment of Zhang was the result of a power struggle within Sina, with COO Du Hong cited as the instigator.
Keywords: HR online advertising mobile advertising Chen Tong Du Hong Internet Olympics Sina Zhang Yu
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