Internap Network Services (NASDAQ:INAP, news, filings) has announced they are bringing in Eric Cooney as its new CEO and President, and named him to the board of directors. Cooney, most recently president and CEO of TANDBERG Television, will be replacing outgoing CEO James DeBlasio. The transition to the new leadership will be on March 16. One might chalk this up to stresses from the economic crisis, but that wouldn't be correct.
DeBlasio took over as CEO three years ago from Greg Peters in November of 2005 to great fanfare as the company advanced out of the telecom nuclear winter looking quite strong. However, the company's acquisition of Vitalstream which closed in early 2007 turned into an unmitigated disaster. Mistakes in the integration of the CDN led to instability in that network, the loss of many customers, and financial restatements. Most importantly to a high end boutique shop like Internap the fiasco cost them a good chunk of valuable reputation.
So while that mess has now been cleaned up and the company seems to have regained its footing, it isn't really a surprise that Internap's board of directors chose to make the change. Good luck to Mr. Cooney, given the economic environment out there he's going to need it. But then, the good thing about taking over in what may be the darkest time of a recession is that there is nowhere to go but up.
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