It is Only Paper Losses

Gateway founder Ted Waitt turned down an offer of US 7 billion from Compaq in 1997, which would have netted him 3 billion. http://www.answers.com/topic/ted-waitt?cat=biz-fin In 1999 Gateway’s stock price gave Waitt a paper value of over 8 billion, when he decided to retire from the company at age 36. Taiwan's Acer snags Gateway. Gateway was bought yesterday for 710 million. A price many analyst thought too high. While Waitt only suffered paper losses anyone who purchased the stock at its $84 high will only receive $1.90. I remember Waitt saying that he turned down the offer because the intrinsic value of the company was much higher than the physical value. Waitt appears to be a failure. He obviously missed cashing out at the top. But he reaped millions as CEO, and has sold the company at a premium. His total compensation from his Gateway venture could total over a billion dollars. Not bad for a business he started with a loan of $10,000 after dropping out of college.