In late 1996, Robert "Teddy" Turner IV left a mid-level management job in his father's organization in Atlanta and relocated to north Florida. A year later, he founded a company called Zekko Corp., which promised to be able to send video and high-volume data over telephone lines. The company's pitch was impressive enough that a California software company called Level One Communications bought a $3.5-million stake.
But 16 months later, Level One, which has since been acquired by Intel Corp., filed suit in federal court in Jacksonville against Zekko, Turner and others, alleging they had rigged a product demonstration and that the technology was phony. That suit was eventually settled for an undisclosed amount.
Meanwhile, Turner hooked up with Rudy Theale Jr., a sales and marketing whiz who had started and sold several businesses by the time he was 24. In 1997, they created LocalNet Communications to sell set-top internet boxes and telecommunications services through a multi-level marketing operation. Before long, however, LocalNet also ran into trouble. Distributors who'd signed up to sell the service complained when the company didn't refund their money when the service failed to materialize.
Financially strapped, Turner turned to New York businessman Mark Honigsfeld, chairman and chief executive of Compu-Dawn, which lent LocalNet $1.8 million in October 1998. As collateral, Honigsfeld took Turner and Theale's interest in LocalNet. But the ink was barely dry on the deal when Compu-Dawn foreclosed on the loan, claiming LocalNet had breached certain covenants. When the dust settled, Honigsfeld was gone and Turner emerged as chairman and CEO of Compu-Dawn, which eventually acquired the assets of LocalNet.
The combined firm didn't take off, and again Turner found himself heading a foundering business. Then, out of the blue, Compu-Dawn was approached by Geoworks Corp., a California firm that offered the rights to a software operating system called GEOS.
Turner brought in Michael Fuchs, former chairman of Time Warner's HBO unit, to add the managerial heft. The plan was to sell personal computers for less than $300 to first-time computer buyers. But it's been an uphill battle for the company, now named MyTurn.com. Last March, Fuchs agreed to absorb any deficits, up to $500,000 a month. Through December, he spent $20 million.
Fuchs also had to take the reigns from Turner as chairman and chief executive. Turner and Theale stayed on as directors until they were replaced in October.
MyTurn.com's shares have plunged from about $30 last March to 25 cents in early February. Turner, who in 1999 was paid a salary of $140,500 and a bonus of $478,125, sold 70,000 shares in October at prices ranging from $4 to $4.88, leaving him with 175,000, all or most of which he has since reportedly unloaded. Meanwhile, Turner is still in Ponte Vedra looking for his next deal.
WCI for Sale?
Keep an eye on Bonita Springs-based Watermark Communities Inc., the big developer and manager of residential communities controlled by Al Hoffman. Insiders say Hoffman, a major financial backer of President George W. Bush's campaign, has been exploring the sale of WCI. The reason: A possible ambassadorship may be in the offing for the feisty entrepreneur and former fighter pilot.
Hoffman will only say that business has been good -- revenues this year are expected to top $1 billion for the first time -- and he's looking at various options, including an initial public offering under the right market conditions.