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Father of DVD Gets Bitter Reward
Ant writes "MSNBC has a
Newsweek article on Warren Lieberfarb, the father of DVD, transformed the movie business. And yet his reward was he was fired."
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"Soliocentric"? I don't know what YOU'RE personally orbiting around, but I think the word you're looking for is "heliocentric".
I'd be curious to hear what kind of case he's going to make. I don't believe there's any principle that if you make an important enough contribution the company has to ignore your generally being a prick, and pleading for Steve Case and Richard Parsons to give you your stock value back seems like begging to your poker buddies after they clean you out.
What I'm listening to now on Pandora...
It was originally "Digital Video Disc". Some folks decided to reconsider the name when they saw how "versatile" the medium could be.
Sorry, but that's absolutely not true. The problem is that Galileo thought he had the Pope's ear and was welcome to discuss heliocentricity despite the warnings of some in the Curia. De Revolutionibus was not placed on the index until 1616, AFTER the Curia got Galileo muzzled the first time. The Pope went along with his advisors, despite an existing relationship with Galileo (2 of whose daughters had taken Holy Orders). Then, later, Galileo tried putting a discussion into print in *Dialogue Concerning the Two World Systems* by providing arguments against as well as in favor of heliocentricity, but probably also under the mistaken impression that the heat was off - but the Curia came down on his hard and had him placed under house arrest. By the way, it was the Ptolemaeic world view, based upon Aristotle and in opposition to Aristarchus; Plato's cosmology was much less sophisticated (no epicycles, because Plato didn't know planetary motions well enough to recognize the need for them).
1: If they gave him the options, but didn't vest them (he can't actually exercise them until they're vested, a gottcha with most options) then there was nothing he could do, short of sabotaging the TW-AOL merger, to protect their value. If that's the case, then TW-AOL should be reamed royally with a rusty post-hole digger. He's still dumb for not demanding immediate vesting, but TW-AOL was screwing him from the beginning with this vesting crap.
2: If his options were vested, and he didn't exercise them before the crash^H^H^H^H^H slide in value, then he screwed himself for not paying attention and/or the greed of thinking they'd be worth even more if he only waitied a little longer. Sorry Charlie, but you don't have a case for that.
Of course the article doesn't clarify the point above. It's ever so much more inflamitory to say he once had options worth $135M (which was no such thing if he couldn't exercise them) and eventually had to settle for a $10M severence -- which is more than I'm going to make this month.
If the guy is good, then he's employable. He's already working again for several top companies. Don't get out the violins for him yet.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
"Warren Lieberfarb. The former chief of Warner Home Video deserved a round of cheers for doggedly pursuing his vision of the new format. Lieberfarb, more than any other person, merits credit for making the DVD a reality. He didn't invent the technology. More important, he saw its potential to transform the industry. So he cajoled, strong-armed and bargained with industry players around the world to set aside their parochial interests and sign on to a universal standard for the new format."
...During tough financial times in Timewarner-ville even. And don't tell me that stock isn't worth anything. Go look up stock symbols TWX and TWTC. A former shadow of itself, sure, but it's still got market potential.
First, let's put things into perspective here: Lieberfarb is a salesman; nothing more, nothing less. He didn't make the DVD and he sure as heck isn't the father. THAT person is probably stuck in a lab somewhere getting a bigger shaft in this end of the deal than Lieberfarb on his worst day. What's more, Lieberwhatever got happily accepted his huge-ass bonus on top of his regular pay: Time Warner stock options once worth as much as $135 million. He obviously accepted it, so whose fault is it that he didn't cash out in time?? Uh-huh. It's the stock market, so accept the risks already. On top of that, he gets a cool 10M in severence. Why aren't I feeling sorry for this guy???
"Say Boss, I know I accepted that 135m in stock options and all, but I didn't cash out on time, so how about giving me lots more money it its place...?"
From every angle I look at this, it sounds like Lieberwhatsit nailed his own damn coffin. From pissing people off to letting himself get talked into unwise financial decision. And while I know corporations can be meat factories, you just don't off and fire somebody who made you tons of money unless he's being a serious ass in most cases.
This guy ain't the poor lackey under the thumb of a giant coporate comglomorate here as is being skewed here. He painted the pentagram on his forehead, danced with the demons and got his reward, promptly screwing himself over in the process. Judgement is for the defendant; One soul please.
You need a FREE iPod Nano
Microsoft Anti-trust (for Government)
Bush v. Gore (for Gore)
SCO v. everyone (for SCO)
Napster (for Napster)
These are some pretty high profile cases, but you'll notice taht he lost two of the major ones, and looks like he is going to lose another w/ SCO. Maybe with all the controversial cases the guy is taking (like Bush v. Gore, and the SCO cases) maybe we'll see the guy go away, or at least charged with malpractice.
This is potentially off topic, however, since we are seeing a lot of David Boise in other areas, it might explain why we aren't seeing him too much in the SCO suit. Just with his choice of mercenary, it makes you wonder about the legitimacy of this guys case.
The views expressed are mine own and do not express the views of my employer.
But his "DVD bonus"--Time Warner stock options once worth as much as $135 million--was wiped out by the disastrous AOL Time Warner merger.
They gave him stock, which they then rendered worthless with poor business decisions.
Interesting point, but your example could be better. Bill Gates has actually given $23 Billion to charity, more than half of his worth.
My guess would be that the majority of what's left of his fortune is tied up in Microsoft stock, and by keeping it invested, he's left the door open to making even bigger charitable donations in future.
Still, the point is almost certainly true for other rich people as well.