NBCUniversal Restructures, Andy Lack OUT

NBCUniversal announced a new organizational structure for the company. The new structure, which is effective immediately, closely aligns NBCUniversal’s television networks – including NBC Entertainment, Telemundo, the cable entertainment networks (USA, SYFY, Bravo, Oxygen, E!, Universal Kids), International Networks as well as the new streaming service, Peacock, under one division led by Mark Lazarus, Chairman, NBCUniversal Television and Streaming. Lazarus will also continue to oversee the NBC Sports Group, owned television stations, and affiliate relations.

Cesar Conde

“This is the right structure to lead NBCUniversal into the future during this transformational time in the industry,” said Jeff Shell, CEO, NBCUniversal. “Mark has a proven track record across every aspect of our television business from sports to local stations to entertainment. He is the ideal leader to oversee our television and streaming portfolio in this newly formed division, which allows us to have a more unified approach to our content strategy.”

The company’s news networks will be organized into a single unit and led by Cesar Conde, who assumes the newly created role of Chairman, NBCUniversal News Group, which now includes NBC News, MSNBC and CNBC.

Shell added, “Cesar is a well-respected, strategic leader who has succeeded in multiple roles at NBCUniversal since joining the company in 2013. Most recently, Cesar has overseen unprecedented growth at Telemundo, which under his leadership has become the number one Spanish-language network, and through its news division has played a critical role in the expansion of news operations, breaking news coverage and trailblazing political reporting. Cesar’s valuable and relevant experience leading broadcast networks and news divisions, combined with his high degree of integrity and proven management skills, make him the right person to lead our news group into the future.”
Both Lazarus and Conde report directly to Shell.

NBC News Group President Andy Lack has decided to step down and will transition out of the company at the end of the month. Noah Oppenheim, President of NBC News; Phil Griffin, President of MSNBC; and Mark Hoffman, Chairman of CNBC; will now report to Conde. A new leader of Telemundo Enterprises, replacing Conde, will be announced later. Until then, the Telemundo leadership team will report directly to Lazarus.

Andy Lack

The Wall Street Journal reports some of Mr. Shell’s restructuring ideas were accelerated by the coronavirus crisis, which will put increased financial pressure on the company, a person familiar with the situation said. NBCUniversal has closed its theme parks and is bracing for a decline in ad spending. The pandemic also led to the cancellation of the summer Olympics, which NBCUniversal has rights to broadcast, and could affect the NFL and college football seasons.

Mr. Shell is looking to make operations leaner in some parts of the company, including its cable entertainment networks, which have been hurt by cord-cutting, and to put more resources into promising areas like studio production and entertainment, the person said.

WSJ reported last week that NBCUniversal was considering significant layoffs as it deals with the financial fallout of the pandemic.

Before the restructuring, Lack had been set to leave after the 2020 presidential election. The end of his tenure will turn the page on a rocky era in the news unit.

Lack has been heading news operations since 2015. When he started, the unit was reeling from the revelation that “Nightly News” anchor Brian Williams had falsely claimed to have been in a helicopter struck by a rocket-propelled grenade while reporting from Iraq.

Lack put Lester Holt in as anchor of “Nightly News” and gave Mr. Williams a late-night newscast on MSNBC, where he has built a steady following. MSNBC enjoyed a surge in ratings in the 2016 presidential election cycle and its aftermath, as did its rivals.

In 2017, he announced a decision to hire Megyn Kelly on a three-year $69 million deal to host a daily hour of “Today” and a weekly prime-time news show. Both bets failed and viewership was disappointing. Kelly left the network and was paid out the entire value of her contract.

Also in 2017, Matt Lauer was fired for inappropriate sexual conduct after one of his colleagues filed a detailed complaint about his behavior. Lauer has said some of the accusations against him were untrue. After Lauer’s firing, NBC conducted an internal investigation and found that Lauer often engaged in sexually oriented banter with colleagues, adding that some employees were afraid to come forward with complaints because of fears that they could be retaliated against.

Critics said NBCNews sat on a story detailing allegations of sexual misconduct against film producer Harvey Weinstein, as reported by Ronan Farrow. Mr. Lack has said the story was not ready to be aired when Mr. Farrow left the network.

The appointment of Mr. Conde cements his rise at NBCUniversal, which he joined in 2013 after serving as president of Univision, a rival Spanish-language network. Telemundo closed the ratings gap with Univision under Mr. Conde’s leadership, in part by airing edgy narconovelas-—soap operas about Mexican drug lords—during the network’s prime-time hours.

Rounding out the NBCUniversal senior management team, the following executives continue to report directly to Shell:

• Matt Bond, Chairman, Content Distribution
• Bonnie Hammer, Chairman of NBCUniversal Content Studios
• Kim Harris, EVP and General Counsel
• Kathy Kelly-Brown, SVP, Strategic Initiatives
• Anand Kini, EVP and Chief Financial Officer
• Donna Langley, Chairman, Universal Filmed Entertainment Group
• Ron Meyer, Vice Chairman
• Adam Miller, EVP
• Craig Robinson, EVP and Chief Diversity Officer
• Tom Williams, Chairman and Chief Executive Officer, Universal Parks & Resorts
• Linda Yaccarino, Chairman of Advertising Sales & Client Partnerships

Under the new structure, the following executives will lead businesses reporting to Lazarus:
• Frances Berwick, President, Lifestyle Networks
• Ken Bettsteller, President, International Networks
• Peter Bevacqua, President, NBC Sports Group
• Philip Martzolf, President, NBCUniversal Affiliate Relations
• Chris McCumber, President, Entertainment Networks
• Valari Staab, President, NBCUniversal Owned Television Stations
• Matt Strauss, Chairman of Peacock
• Paul Telegdy, Chairman, NBC Entertainment