Hearst, which owns TV stations and newspapers including the San Francisco Chronicle and magazines such as Cosmopolitan, has begun a search to find a new CEO and will in the interim be led by Frank Bennack, former long-time CEO and vice-chairman of the Hearst board of directors and chairman of the executive committee, who will reassume the role of CEO.
Ganzi's departure after six years as CEO comes after reports of tension over plans to invest more heavily in the struggling newspaper market. Last year Hearst, which was founded and came to prominence under William Randolph Hearst as a newspaper business, invested $288m to buy a 31% stake in Denver, Colorado-based newspaper group MediaNews Group as well as buying newspapers in Connecticut.
These investments come against a backdrop of falling advertising revenues and print sales as the US newspaper business cuts thousands of jobs nationwide in an effort to stay profitable, with titles including the New York Times and the Los Angeles Times being hit.
Just last month, Hearst invested in a project to expand the Albany Times Union's existing headquarters in Colonie, NY, by 70,000 square feet to accommodate a new state-of-the-art printing and packaging facility. The project will not be completed until the end of 2011.
During his time at Hearst, Ganzi was responsible for pushing a diversified strategy, in which the media firm invested in a number of digital ventures including the acquisition of Answerology and Kaboodle.
Bennack said: "Victor Ganzi worked diligently to direct Hearst during a critical time, and we are appreciative of his commitment to Hearst's success. We wish him well in his future endeavors."
Ganzi said: "It has been an honour leading this company and working with such talented people throughout the organisation over the past 18 years -- and the last six as CEO. Based upon 15 record profit years out of the last 16, Hearst is well-positioned to extend its leadership in the media industry in the future. I will work with the company to ensure an orderly transition of leadership."
Hearst owns 15 daily and 31 weekly newspapers in all, and nearly 200 magazines as well as 29 television stations through Hearst-Argyle Television that includes cable channels Lifetime, A&E, History and ESPN.
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