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Those close to Stringer say he felt increasingly underappreciated by Tisch. Under Stringer's energetic leadership, CBS rebounded from third to first in the prime-time ratings; revitalized its nearly moribund sports division (with high-rated Olympics coverage and its aggressive-if expensive-acquisition of major league baseball coverage); and scored a major coup in corralling Letterman. "I don't think he felt he got the recognition-or the compensation associated with recognition-he deserved," says a former CBS executive. Another source close to Stringer describes his relationship with Tisch as "amicable but not especially productive" and says Stringer was frustrated by Tisch's cautious, tightfisted ways. CBS, for instance, has been the only broadcast network not to invest in cable or other new media.
Now most observers on Wall Street expect that Tisch will soon get out of the broadcasting business. Among the potential buyers of CBS: Viacom, the media conglomerate that acquired Paramount; the Walt Disney Co.; Diller, who could re-emerge with new backers; and Atlanta cable baron Ted Turner. A Turner bid appeared to grow more likely last week, as Time Warner neared completion of a deal to sell its 19.4% stake in Turner Broadcasting. Opposition from Time Warner (and potential regulatory problems posed by the company's other media holdings) has been a stumbling block to Turner's all-out pursuit of a network.
Stringer is being replaced by Peter Lund, 54, formerly head of the CBS stations division and currently Stringer's second in command. Lund insists that uncertainty over Tisch's plans will not affect CBS's ability to right itself. "We have never had any shortage of financial support for the core business of broadcasting," he says. But some Wall Street analysts feel that Stringer's departure could hurt the value of Tisch's enterprise. "Stringer is really a big loss for them," says Jessica Reif of Merrill Lynch. "I think it's another blow."
It's a blow to all of broadcasting. Over the years, Stringer has been an articulate defender of traditional mass-audience broadcasting vs. cable and other new-media rivals. "I absolutely still believe that broadcasting is the foundation of all programming," says Stringer. "I'm not going to be putting down broadcasting." He will, however, be putting his considerable skills and charm to work for the competition.
--With reporting by Adam Cohen/New York