News
Analysis
TiVo CEO to Shareholders: You Don't
Get It
Mike
Ramsay tells USA Today that the company's
stock has
dropped because investors are 'overreacting' to
negative news
reports. By Phillip Swann
Washington, D.C. (February 4) -- It's not
every day that the CEO of a struggling
company publicly tells his shareholders that the
company's strategy is "lost" on
them.
But that's what TiVo CEO Mike Ramsay did today
in an interview with USA Today.
Shares of the Digital Video Recording service
have dropped nearly 40 percent in
recent weeks due to various negative news
reports and the resignation of company
president Marty Yudkovitz and Ramsay's own
decision to step down as CEO on an
unspecified date.
Asked if TiVo's shareholders are
"overreacting" to the news, causing
the company's
stock to decline, Ramsay said:
"Yes, there's no question. It's a
frustrating set of circumstances for us, as you
might
imagine. The company has been on a high growth
curve and has been gaining
subscribers at a fast growth rate. And a lot of
that has been lost on the investment
community."
Ramsay also had some zingers for Yudkovitz, who
resigned amid reports that he
opposed Ramsay's decision to nix a licensing
deal with cable operator Comcast.
"Marty was president in title, but he had a
fairly narrow role centered around the
development of mass deployment deals for the
company. From an operational
standpoint, there's not a big impact in Marty's
departure. Also, there was some
misunderstanding around Marty and whether he was
a candidate for the CEO
position. And I can tell you that he was not. He
was never considered for that,"
Ramsay told the newspaper.
Ramsay also said that reports that he turned
down the Comcast deal are "totally
untrue. I sure as hell am not going to walk away
from something that makes sense
for the company and its shareholders. That
rumor, wherever it came from — and
God knows where it came from — is totally
fabricated and completely false."
The New York Times and several other
publications, including TVPredictions.com,
have reported that Ramsay rejected a deal with
Comcast. Ramsay told USA Today
that talks with Comcast are still ongoing.
Ramsay's comments are likely to stir up more
controversy for the company.
Yudkovitz, a longtime television veteran, is
well liked in both New York and
Hollywood. In addition, stockholders may not
appreciate being told that they are
selling shares because they don't understand
what's going on. The remark could
send the stock down even further. (Although
today's guidance from TiVo that it will
meet earlier forecasts for
"standalone" DVR 4Q sales should
pacify most; shares
closed at 3.63 on Thursday.)
Ramsay and TiVo's board of directors are looking
for someone to replace him as
CEO. After today's USA Today article, if
they find someone soon, it won't be too
soon.
Phillip Swann, president of TVPredictions.com,
has been quoted on TV technology
in dozens of publications and by broadcast
outlets, such as The Chicago Tribune,
The Hollywood Reporter, Fox News and CNN. If you
would like to contact Mr.
Swann, he can be reached at 703-505-3064 or at swann@tvpredictions.com
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