I'm going to mention something that probably won't be a popular way of thinking, but I'd appreciate some genuine discussion without having rotten tomatoes being tossed through my modem. :)
I understand that a lot of people are upset at Henry and Elsie, but I really don't understand the timing of being upset. At the time that the "creative accounting" was revealed, there was discussion about whether it was completely legitimate, totally illegitimate, or something in between that isn't so black-and-white. But I really don't remember much displeasure toward the two of them being expressed in the folder. I could be wrong, but I think that's because the stock was a lot higher at the time.
I ask myself, is it only in the face of an incredibly declined stock price that we should be mad at the two of them? If the stock price was still high, would there be so much bitterness toward them?
Relative to that, I have other questions. More important, I wonder why none of them have been raised that I can remember:
If the SEC feels there is merit to charging the two of them with fraud, why did it take so long? (A good friend who is a federal prosecuting attorney tells me that this sort of case legitimately takes a really long time.)
My understanding is that the SEC can only make civil cases. If the SEC is investigating fraud, why isn't the Justice Department doing the same for a criminal case?
Why is there no investigation or charges against Gemstar's auditor?
For those who have lost a lot of money in the stock, have the relative losses been any worse than the many other dot bombs and high-tech companies whose accounting has been impeccable?
Now that praises are being sung about the new management team for settling with Tivo and extending the relationship with Thomson, why are those deals perceived as any different than Henry's way of doing business? Management has been in place over a year and it took this long (understandable in my opinion) to resolve the Tivo situation, and I don't see that as any different than Henry's settlement of the TV Guide litigation. I don't see the Thomson announcement any different either, especially recognizing that there were similar announcements by Thomson under Henry's regime.
Looking forward to comments.
--Mike Buckley |
