Gemstar CEO Resigns; to Focus on International Development
Updated: Wednesday, October 9, 2002 2:46 PM
Posted: Wednesday, October 9, 2002 2:46 PM
Henry Yuen has resigned as chief executive officer of Gemstar-TV Guide International and will be replaced by Jeff Shell, the company announced Oct. 8. Gemstar-TV Guide is the parent company of the TV Games Network.
Gemstar, in a prepared statement, said it reached "an agreement in principle" with Yuen and Elsie Leung, the former chief financial officer, subject to completion of documentation. Yuen will continue as chairman of the board in a non-executive capacity, and Leung, who will remain a board member for three years, will assist Yuen in working to develop international opportunities for the company.
Paul Haggerty, currently executive vice president for finance at News Corporation, which owns 42% Gemstar's outstanding stock, will succeed Leung as chief financial officer. Gemstar said it would conduct a search for a permanent CFO.
Under existing contracts, Yuen would receive about $22 million, and Leung about $7 million, as termination payments. In addition, they would exchange about 20 million outstanding options for approximately eight million shares of restricted stock and about nine million new stock options in connection with their termination, employment, and other future agreements.
"My vision of creating a multi-media company focusing on television guidance to capture the exciting opportunities of interactive television and digital convergence has been realized by the formation of Gemstar-TV Guide International, which now reaches more than 100 million television viewers on a daily basis with its print, television, online and IPG properties," Yuen said in a statement. "As I mentioned earlier this year, the company has embarked on a new phase of growth which will focus on expanding its win-win relationship with service providers in the U.S."
Said Rupert Murdoch, chairman and chief executive of News Corporation: "Gemstar is a company of enormous potential, and it is our hope that today's announcement will foster growth and stability for the company and its shareholders. We became, and remain, significant stakeholders in Gemstar because we believe deeply in the value of Gemstar's technology and assets and their vital role in the emerging digital world."
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