meanwhile, waseco operating partner warner communications experienced financial upheaval, including the reversal of fortunes at innovator atari, and legal questions about business dealings of ross and his senior lieutenants. in an effort to maximize the good news, warner communications decided to spin off nickelodeon and the rapidly growing phenomenon mtv as a public company (mtv networks). jack schneider also left waseco, being replaced by senior warner executive david horowitz (who oversaw warner communications' half of the wasec joint venture).