Yuen Quits; Shell Takes Over Gemstar10/09/2002 3:21 AM Eastern
News Corp. won its battle to oust Henry Yuen as CEO of Gemstar-TV Guide
International Inc., as former Fox Cable Networks Group head Jeff Shell was named
the new CEO of the interactive-program-guide vendor.
Yuen gets a $22 million parachute, and he'll remain chairman of the company
under a new five-year employment contract.
Yuen's confidant, chief financial officer Elsie Leung, is also leaving, with
a $7 million severance deal. Leung is being replaced by Paul Haggerty, currently
executive vice president of finance at News Corp., which owns 42 percent of
News Corp. became frustrated with its Gemstar investment in recent months, as
the company has been pummeled by questionable accounting practices and legal
setbacks. In the past year, Gemstar's stock has dropped from $19 per share to
Shell was named Gemstar chief operating officer in May, and he recently
recruited former Fox Cable executive Ray Hopkins to run affiliate sales for
In the announcement, which came late Tuesday night, Gemstar said the exits of
Yuen and Leung are 'subject to completion of definitive documentation.'
While Shell will run Gemstar, Yuen will focus on international opportunities
for the company.