Media Vision

Media Vision Technology, Inc.
defunct
Industry computer audio industry, computer and video game industry
Founded 1990 (1990)
Defunct 1995 (1995)
Headquarters Fremont, California USA
Key people

Paul Jain, CEO
Russell Faust, COO
Steve Allan, CFO
Dan Gochnauer, VP of Engineering
Wayne Nakamura, Director of Manufacturing
Bryan J. Colvin, Director of Hardware Engineering
Tim Bratton, Director of Strategic Marketing
Jim Gifford, Director of Software Engineering
Doug Cody, Senior Software Engineer

Ken Nicholson, Director of Game Software Development
Products computer sound cards, computer video cards, computer multimedia kits, computer games

Media Vision was an American electronics manufacturer of primarily computer sound cards and CD-ROM kits, operating from 1990 to approximately 1995 in Fremont, California. Media Vision was widely known for its Pro AudioSpectrum PC sound cards—which it often bundled with CD-ROM drives—and its spectacular growth and demise.

Company history

Media Vision was founded in May 1990 by Paul Jain and Tim Bratton. Early employees also included Russ Faust, Michael Humphries, Dan Gochnauer and Bryan Colvin all from Mr. Jain's prior company, Video-7. As Mr. Bratton recalls, he wrote the company's business plan while an engineer at National Semiconductor based on Jain's vision of evolving multimedia from VGA to Audio and Video.[1] Jain raised substantial funding, based on a business plan on a single sheet of paper, from top VCs such as Brentwood, Nazem, 3i and others.[2] Within its first two years of operation, Media Vision had become the second-largest producer of personal computer sound cards, providing strong competition to Creative Labs. It was the first company to offer a Multimedia CD Rom kit (Single Speed CD Rom drive from Sony and Media Vision sound card with an included CD Rom with games and a multimedia version of Compton's encyclopedia). At Fry's Electronics, the well known retailer, where manufacturers routinely tested sales of their new products. Media Vision's kits priced at US$1999 sold out within hours. All the larger computer companies such as Microsoft, Apple and others were the primary initial buyers according to Fry's Electronics.

In 1992, Media Vision was the first company to publish Microsoft Windows with Multimedia Extensions on CD-ROM; having beaten Microsoft to market with its own product, Bill Gates's assistant telephoned and ordered two copies. During the same year, the company acquired Pellucid, Inc., a computer graphics company, and began producing a line of high-performance video graphics cards for the PC. Media Vision became a publicly traded company in late 1992.

Jain oversaw the development of several multimedia chips because he quickly realized that the audio board business would morph into audio chips on PC motherboards. Media Vision developed three complex chips such as a 16 bit accelerator chip, an FM Synthesis Chip and a Mixed Signal DSP

New logotype, new image

Media Vision logotype (1990–1993)

In 1993, Media Vision updated its logotype to reflect its expanding product lines and broad foray into technologies beyond computer audio. Perhaps one of the biggest endeavors was the company's leap into software publishing with the creation of its Multimedia Publishing Group. CD-ROM titles such as Critical Path, Quantum Gate, and Forever Growing Garden were often bundled with its multimedia kits. The new logo reflected the company's desire to be known as a cutting-edge multi-media technology company. During the same year, the company expanded business operations into Europe with the establishment of Media Vision GmbH in Munich, Germany.

Financial scandal

Media Vision could not sustain its meteoric rise. On May 17, 1994, CEO Paul Jain was forced to step down as Media Vision quickly became the subject of the longest-running securities fraud case in Silicon Valley history. The investigation and trial lasted nearly a decade, resulting in criminal charges filed against Jain in 1998 and his unsuccessful indictment on 27 counts of financial fraud(Wired) and judgments against Jain and CFO Steve Allen ().Judge Jenkins, who oversaw the case, allowed only two counts of "wire fraud" against Jain, and in conjunction with the US attorney's office, dismissed all the other charges. Jain was represented by Michael Chertoff, President Bush's Homeland Secretary. Jain maintained that he was setup while other senior officers of the company tried to cover a US$6 mi revenue shortfall. He fought the DOJ for 10 years and only pleaded guilty because during this period, Jain had two little children and did not want to endanger his health and financial resources, in a continuing battle with the DOJ. In the end, Jain served a few months at a federal camp and subsequently, founded four companies in developing multimedia products.[3]

The collapse of Media Vision cost investors and bond holders US$200 mi. This loss was in large part created by the class action lawsuit in which the beneficiaries were lawyers and short sellers. Jain himself lost over US$40 mi in the decreased value of his shares of Media Vision. Jain sold less than 10% of his share holdings during Media Vision's life according to the auditor's reports.

Media Vision ultimately became Aureal Semiconductor. When the company changed its name to Aureal, it sold all product lines, key technologies, and trademarks related to the old Media Vision to SVT Shiva, Inc. (SVTI) of San Jose, Calif. SVTI then created a new division called Media Vision Innovations, Inc. to sell existing inventory. It is suspected that Bob Brownell, who conspired to become Media Vision's CEO and forced Jain out, along with his VP of sales Steve Cason, were beneficiaries of selling this inventory at 25% of the cost. The new division also developed and sold a few new multimedia products under the Media Vision name. SVTI agreed to purchase audio chips from Aureal for the first two years as part of the deal.

Media Vision products

Media Vision's products included PC adapter cards, other hardware, and computer games.

PC adapter cards

MediaVision Jazz16 LMSI

Other hardware

Software

Internal structure

Internally, Media Vision was dominated by its large engineering and marketing departments, roughly equal in size and reporting to the Chief Operating Officer Russell Faust. Director of Manufacturing Wayne Nakamura also reported to the COO.

Engineering

The company's engineering efforts were headed by VP of Engineering Dan Gochnauer, formerly of the Sperry-Rand Corporation.

Hardware

The Director of Hardware Engineering was Bryan J. Colvin, once an early employee of Apple Computer, where he designed much of the Apple IIc.

In addition to Component Engineer James Persall, the engineering staff included electrical engineers:

Software

The Director of Software Engineering was Jim Gifford. Reporting to him were:

The development of SCSI device drivers was outsourced to Trantor Systems.

Sales & marketing

Marketing staff included:

See also

References

  1. ↑ This Archived letter for procuring sublicense agreement for a Patent, send and signed by Mr, Jain as a CEO. https://ccrma.stanford.edu/~aj/archives/docs/all/081.pdf
  2. ↑ These names are in the Judgement report https://www.gilardi.com/pdf/mvtnot.pdf
  3. ↑ Federal Court Judgement https://www.gilardi.com/pdf/mvtnot.pdf
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