Major shake-up at Canadian news distribution provider
Marketwired has split from Sysomos, the social media intelligence firm it acquired five years ago, and promoted chief strategy officer Adnan Ahmed to CEO in a major shake-up at the Toronto-based news distribution service.
The changes come just two years after Marketwired undertook a rebranding in which it changed its name from Marketwire and appointed chief operating officer Jim Delaney as CEO.
The spin-off will provide Marketwired with a ‘refocused corporate direction’ and help it concentrate on core customers, products and growth opportunities, the firm says. Despite the separation, Marketwired customers will continue to receive Sysomos products through an agreement between the two companies, which are both backed by OMERS Private Equity.
Speaking to IR Magazine, Ahmed says his initial objectives are to boost Marketwired’s customer focus, drive product innovation and strengthen the leadership team following the split. For IR clients in particular, he sees resource pressures as a key challenge they need help with.
‘Doing more with less is an old and somewhat tired adage, but unfortunately one that is still true for many public companies, our publicly listed customers included,’ Ahmed says. ‘Many of our IR customers face challenges in balancing regulatory and compliance requirements, proactively managing an effective IR communication program, and finding new opportunities to attract and stay connected with investors – all of it with limited time and resources.’
Ahmed also highlights the line IROs must walk between opening up their communications to new channels and staying on the right side of the regulators, as well as risk-averse senior management.
‘Many of our clients are fully aware that an expanded digital presence for their company or a foray into social media might broaden their outreach and open up new opportunities for targeting investors,’ he explains. ‘But the risk they see (or their C-suite sees) in being freer and more transparent with their communications is simply too great for a company operating in a restrictive and regulated environment.’
