Murdoch believed that the principal focus of GTGI’s operations should be the
company’s Media and Services Sector that had been consistently profitable for
decades because of TV Guide’s popularity. During the first two years that Yuen
oversaw GTGI’s operations, TV Guide’s circulation dropped dramatically, falling by
approximately one million subscribers. TV Guide’s declining circulation and advertising
revenues was the principal factor responsible for the large loss that GTGI
reported for fiscal 2001.
By early 2002, Murdoch was pressuring Yuen to resign as GTGI’s CEO. Yuen resisted
that pressure. When Murdoch initiated weekly management meetings to address
GTGI’s declining health, Yuen often skipped those meetings. When he did attend,
Yuen reportedly refused to participate, choosing instead to carry on conversations
in Cantonese with his longtime confidant, Elsie Leung, GTGI’s chief financial offi -cer (CFO). As Gemstar’s financial condition continued to deteriorate, Yuen became
increasingly “abrupt” and “secretive,”8 further undercutting his ability to work with
Murdoch and key GTGI executives. Years later, his personal attorney would defend
Yuen’s management style, while admitting that his interpersonal skills, a skill set so
critical to top corporate executives, were sub-par. “I would not say of Henry that
sweetness and diplomacy were his strong suit.