Digital News Channel
The client was a television news channel with over 900 employees across more than 20 geographic locations. The parent organization was concerned about the subsidiary’s financial viability, given that its share of the marketplace was disproportionate to its annual costs. The parent company sought to explore strategic alternatives and assistance in creating and implementing an action plan to execute these alternatives.
- Financial Advisor
CR3 worked with company management to evaluate various alternatives for the organization and conducted strategic, operational and financial analyses. The company’s board of directors ultimately elected to conduct a managed exit from the market and further retained CR3 to lead the process. CR3 acted as the project manager of the exit process, developed a detailed budget of all projected exit costs, oversaw all project workstreams and coordinated the activities of company and external personnel. Among other tasks, we helped management determine the remaining on-air broadcasting timeline for the channel, selected program content, ensured the company abided by contractual requirements, coordinated personnel and service providers during the 48-hour period immediately after the exit was announced, and created a competitive exit-package severance structure for full-time employees and contract staff.
The successful wind-down process achieved the parent organization’s goal of exiting the marketplace with the brand intact and ensuring employees, customers and service providers were treated honorably and respectfully. CR3’s delivery of strategic planning and operational execution was critical to that success. In addition, the detailed financial analyses CR3 generated were crucial to negotiating an economically beneficial exit from the company’s contractual liabilities. Due to CR3’s collaborative work with the company and counsel, the company saved $500MM in exit costs versus the original budget.
- Financial Advisory