CEO Departure and Interim Appointment
Affiliate marketing giant Catena Media has been undergoing major changes recently, kicking off with the sudden resignation of CEO Michael Daly in late February 2024. Daly, who had served as CEO since March 2021, stepped down with immediate effect after overseeing a disappointing 2023 for the company.
Under Daly’s tenure, Catena saw a sharp decline in revenue, with its crucial US market revenue dropping 21%. This poor performance, coupled with a 75% year-over-year plunge in Catena’s share price, led to calls for Daly’s resignation from industry figures like STS founder Mateusz Juroszek.
Following Daly’s exit, Pierre Cadena, Catena’s Vice President of Corporate Strategy, was appointed as the interim CEO while the company searches for a permanent replacement.
New CEO Appointment and Board Revamp
On March 25th, 2024, Catena Media announced the appointment of Manuel Stan as its new permanent CEO, effective July 1st. Stan, a former Kindred Group executive with over 16 years of experience, will be based in Las Vegas and tasked with driving Catena’s growth in the North American market.
Alongside the CEO appointment, Catena also proposed a board reshuffle, with Erik Flinck, the chairman of digital health startup Dr Hud, nominated as the new chairman. Dan Castillo, a long-time Catena investor, was proposed as a new board member, while Øystein Engebretsen, Theodore Bergquist, Adam Krejcik, and Sean Hurley were nominated for re-election.
The proposed changes aim to reduce the size of Catena’s board from seven to six members, with outgoing members including former chairman Göran Blomberg, Esther Teixeira-Boucher, and Austin Malcomb.
Strategic Shift and Cost Optimization
Catena’s leadership overhaul comes as the company implements a strategic shift to focus on the North American market while divesting assets in Europe. In August 2023, Catena sold its UK and Australian online sports brands to Moneta Communications as part of this strategy.
Additionally, the company launched a cost reduction program of around €4 million to “optimize group operations” following recent divestments. Daly had initially defended this restructuring, calling for patience as the changes took effect, but his sudden departure suggests the board’s impatience with the pace of the turnaround.
As Catena Media navigates these turbulent waters, the incoming leadership team led by Stan and the refreshed board will face significant challenges in reviving the company’s fortunes and capitalizing on the lucrative but highly competitive North American market.