MCI WorldCom VP Resignsgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
MCI WorldCom VP Resigns
Dec. 9, 1999
Clarion Ledger, Jackson, MS
Moves could dent WorldCom profits
Sale of Internet service rumored as executive resigns
By Mark Watson Clarion-Ledger Staff Writer
Two moves one involving hundreds of thousands of people, and another involving just one man could each affect MCI WorldCom's bottom line by millions of dollars.
The Australian Financial Review reports speculation that Rupert Murdoch's News Corp. is negotiating to buy MCI WorldCom's OzEmail Internet service provide unit for about $500 million in Australian dollars ($318 million in U.S. dollars).
The other move, considered more worthy of attention by U.S. analysts, is Timothy Price's decision to resign from the position of president of MCI WorldCom's communications division, a position that has placed him over the core long-distance business, the Internet and the Uunet Internet backbone business. Price's salary, according to MCI WorldCom's latest annual report, totals $9.2 million, including options.
David Burks, an analyst with J.J.B. Hilliard, W.L. Lyons, in Louisville, Ky., said he had not considered the impact of selling the Australian unit, which was only acquired early this year, but had serious concerns about Price's decision.
"Obviously, you hate to see the organization lose someone of his abilities," Burks said.
In a prepared statement, Bernie Ebbers, president and chief executive officer of Clinton-based MCI WorldCom, said Price, who was MCI president and chief operating officer from 1996 until MCI merged with WorldCom in September 1998, "played a key role in the creation and growth of MCI WorldCom."
On Monday, Price was appointed to the board of Telnext Communications, of White Plains, N.Y. This company focuses on providing Internet-protocol-based communications solutions on a worldwide basis.
"My decision to leave MCI WorldCom has been enormously difficult," Price said in a prepared statement. "Bernie Ebbers has built an outstanding company, which is well-positioned to compete globally and to provide customers with superior next-generation services."
Burks noted that the departure appears to be "on good terms."
Regarding OzEmail, which serves about 320,000 consumer customers Down Under, MCI WorldCom spokesman Brad Burns refused to comment on "rumor and speculation." OzEmail agreed to sell off the Internet telephony assets to ITXC, of Princeton, N.J., in late November for an undisclosed amount.
The Australian Financial Review (which can be reached on the Internet at www.afr.com.au) reports that an unnamed News Corp. spokesman said, "It falls very heavily into the realm of market speculation."
-- techno man (firstname.lastname@example.org), December 10, 1999
I don't think this was posted but I also heard on the news that the President and Vice President of Gateway Computers have both decided to "retire" too. Heard that a couple of days ago.
Interesting times and timing.
-- Michael Taylor (email@example.com), December 10, 1999.
Just wondering.... if the CEOs and CIOs all play musical chairs, do they get out from under all the Y2K liability claims next year?
Hey, wasn't my fault... just been here a couple weeks/months.
A golden parachute and they get to duck the bullet. Not bad.
-- Linda (firstname.lastname@example.org), December 10, 1999.
When you tally up the threads, place this in the NOT RELATED to Y2K category. I know we're all one with the universe but believe me this is not related to Y2K. Since you're so smart in figuring out the interconnectedness of Y2K, you've overlooked how businesses operate. In any merger (or buy in this case), there are a number of VPs that leave. Tim is just one of many who have gone.
-- Maria (email@example.com), December 10, 1999.
Maria, I recommend you take a dose or two of Metamucil.
-- Wilfabrooke (firstname.lastname@example.org), December 10, 1999.
It was no merger between MCI and Worldcom Marie, in as much as you believe it was, but rather Worldcom made a hostile takeover the MCI because MCI had lost it's focus in the last couple of years. Ebbers is just cleaning house in a very smooth manner. It's just amazing how corporate brainwashing works these days. Mr Ebbers is not good for the companies he takes over.
-- y2k dave (email@example.com), December 10, 1999.