Cox Web Subsidiary Eyes Reorganization

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It looks like the scene may be changing over at Cox Interactive Media, the
Web-site-development subsidiary and sister company that supplies local content
portals to cabler Cox Communications Inc.'s high-speed cable-modem service.

The Atlanta-based unit's leadership is mulling a reorganization that may fold
operations into other Cox Enterprises Inc. units, including possibly Cox
Communications, The Atlanta Journal-Constitution, a rack of television
stations and Cox Radio Inc.

With some 400 employees, CIM runs 20 local portal sites. Earlier this year,
it created broadband versions of those sites for Cox's high-speed Internet
service. Plans are to add 15 more broadband sites later this spring.

CIM spokeswoman Marlene Burford said the plan likely will jell by early May.
As yet, there is no hard plan for layoffs, and the city sites it runs will stay
online, she added.

Although CIM has been unprofitable in recent months due to the
online-advertising implosion, Burford said the main reason for the
reorganization was the changing market that is shifting toward the broadband
business.

'Cox Interactive Media is looking at the growth that is happening in the
broadband arena and looking at reorganizing corporately to take advantage of
that growth,' she said. 'From the research that we are seeing, more than
one-half of Internet time is spent through broadband now.'

Despite the looming reorganization, CIM still plans to debut 15 new broadband
portals, Burford said, adding, 'Everything is still on plan.'

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