Expanding his influence.

• Position: Triangle - Company overview - Interview

Ken Eudy has long wielded influence in Raleigh, as a television journalist, political reporter for The Charlotte Observer, executive director of the state Democratic Party in 1987-88 and head of Capital Strategies Inc., the communications agency he founded in 1994. Now called Capstrat Inc., it is one of the largest in. the Southeast. But with the economy becoming more global, the Albemarle native needed a longer reach. In January, he sold Capstrat to Ketchum Inc.--part of New York-based Ommicom Group Inc.--for an undisclosed amount. It will keep its name and Eudy, 59, as CEO. The following interview has been edited for clarity and brevity.

How did Capstrat get so big?

We started as a public-affairs firm. Then our clients asked, "Can you help us with our public relations?" So we hired someone. In the late 1990s, clients asked if we could strengthen their brands, so we acquired a marketing agency. Public affairs is a minority of what we do today.

How much revenue does it bring in?

I can't go into as much detail as I used to because now we are owned by a public company. But marketing has been the real driver of our growth the last five to seven years. Though I still love the public-affairs campaigns more than anything else.

So you can't tell me your revenue?

No. I asked for guidelines before you called. I knew you'd ask that.

Is it strange to have a boss?

As long as we continue to do the kind of job we've been doing, my boss will be very happy. At least I hope he will.

Did you approach them?

It was sort of a mutual thing, but we had engaged an adviser to explore our options.

Why?

Since the economy has started to recover, our clients are asking us to support them in geographies we can't reach. There's this one foundation that we would love to work for. They kept telling us, "Gee, we really wish you had an office in New York or Washington, D.C." Before we even closed the deal, in December, we had a client who asked if we could support a product launch in Eastern Europe. I said absolutely. In the fall, I couldn't have said that.

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