RealNetworks Soars as CEO Steps Down - TheStreet

RealNetworks Soars as CEO Steps Down

Digital Entertainment company RealNetworks' founder and CEO Rob Glaser announced his resignation on Wednesday -- signaling major changes at the company, and sending shares in the company skyrocketing in Thursday trading.
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NEW YORK (

TheStreet

) -- Digital Entertainment company

RealNetworks'

(RNWK) - Get Report

founder and CEO Rob Glaser announced his resignation Wednesday, in a sign of major changes at the company.

Glaser founded RealNetworks 16 years ago. Glaser told the company's employees in an email that he plans to spend more time on civic and other projects outside of RealNetworks, according to a

Wall Street Journal

report.

Real Networks shares, in response, are trading up 10.1% at $4.25 on Thursday morning.

Real Networks said general counsel Robert Kimball has been appointed as acting CEO while the board looks for a permanent replacement.

In a post to his Facebook contacts on Wednesday, Glaser indicated a possible reorganization at RealNetworks, pointing to "an extremely rigorous strategy review and ... a very exciting road map for the future," according to the

LATimes.

Glaser said that more details on the changes will be revealed in the days and weeks ahead.

Glaser's departure from RealNetworks could indicate a strategic shift at the company, according to an analyst cited by the

Associated Press.

Morgan Keegan analyst Tavis McCourt says the company may outline its new approach when it reports earnings next month, according to the wire report.

RealNetworks creates and delivers digital media content such as music, games and video to consumers worldwide. Its products and services include RealPlayer, Rhapsody digital music service, RealArcade and a variety of mobile entertainment services, such as ringback tunes, music-on-demand and video-on-demand.

-- Reported by Andrea Tse in New York

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