Post Acquisition Structure

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    • #25778 Reply
      Unknown,Unknown
      Participant

      Question for Ken:
      Many times you have mentioned that your main concern when
      discussing the CUC Sale with the CUC heads back in 1996 was that a post acquisition structure would be put in place which would keep Sierra alive. What was this structure exactly, and what factors led to Sierra’s decline? And also, when did you officially step down as CEO?

    • #25779 Reply
      Unknown,Unknown
      Participant

      Question for Ken:
      Many times you have mentioned that your main concern when
      discussing the CUC Sale with the CUC heads back in 1996 was that a post acquisition structure would be put in place which would keep Sierra alive. What was this structure exactly, and what factors led to Sierra’s decline?

    • #25780 Reply
      Unknown,Unknown
      Participant

      My memory is a little foggy … so, if anyone remembers this better than me, feel free to jump in..

      Here’s what was agreed:

      1) I was to go onto CUCs board as Vice-Chairman. My understanding was that this would put me “above” Bob Davidson, even though he would run the software business day to day. My goal was to give him the independence he needed to succeed, but I thought this corporate role would allow me the visibility, and voice, to intercede if things weren’t going well.
      2) I was to become the third member of the “Office of the President” with CUCs two existing co-Presidents
      3) A software board was going to be formed, which would have Bob Davidson, Myself, Mike Brochu (Sierra’s President) and I believe Kirk Shelton of CUC (who is not in jail)
      4) No major decisions were to be made (such as dropping product lines, or consolidating functions) without prior review by the software board
      5) I was to stay responsible for Sierra’s R&D

      Once the deal was done, all of this was forgotten almost immediately.

      Did I mention that the top two CUC executives, who were responsible for this deal, have been given jail sentences?

      I still cannot honestly say that I believe they were crooks, although their actions (and convictions) speak for themselves. Other than their not being honest with me about how Sierra would be operated post-acquisition I never saw any hint that they weren’t honest, hardworking, highly successful people.

      -Ken W

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