We all have our price. Jim Caparro's was $10 million. Or so says one industry analyst, anyway.

　　The backstory to the departure of Atari's short-lived CEO came into focus this morning. That's when industry analysts checked in with their assessments of the damage his sudden and surprising departure has wrought upon the Atari agenda.

　　In his memo to investors this morning, TerraNova's Boris Markovich wrote, "The abrupt departure of a CEO is never good news, and the fact that Mr. Caparro had only been CEO of Atari for just over six months makes this news worse."

　　Caparro is credited with bolstering Atari's ship since joining the company on November 29, 2004, by making at least two key hires: that of CFO Diane Baker, who got on board in January, and the company's current marketing boss, Marc Metis. However, his larger legacy will be that of his departure.

　　Caparro's move to Glenayre Technologies, where he will assume the role of president and CEO of Glenarye division Entertainment Distribution Corp. (EDC), reunites him with a business proposition left stillborn some years earlier.

　　As Wedbush Morgan senior analyst Michael Pachter tells in his memo to investors (also sent this morning), Caparro had previously formed a company called Entertainment Distribution Company (the same EDC) with business partner Thomas Costabile. The idea behind EDS, according to Pachter, was to purchase the Universal Music Group's CD and DVD manufacturing and distribution operations. Reportedly, after vainly pursuing said goal for one year, Caparro and Costabile called off the chase.

　　Shortly after that disappointment, Caparro, who was concurrently a member of the Atari board, accepted the Atari offer to become its CEO. But the "EDC opportunity was revived," according to Pachter, when Glenayre recently acquired the North American and central European CD and DVD manufacturing and distribution operations from Universal Music Group for approximately $119 million. Glenayre sought out Caparro and pitched a deal no reasonable individual could refuse.

　　"In addition to a $750,000 annual salary and the opportunity to earn an additional $750,000 annual bonus, Mr. Caparro's portion of [future EDC profits] could total as much as $10 million per year, based upon statements made in [a Glenayre] press release," says Pachter. The deal has been called "far superior" to what was available to him at Atari.

　　Caparro reportedly met with analysts during last month's E3 but declined to alert them of his acceptance of the EDS offer. Atari chairman Bruno Bonnell--who was named interim CEO yesterday, just as he had been in the months before Caparro's hire as well--has told analysts he was informed of the news only last Friday.

　　As far as Wall Street's reaction goes, Pachter elucidated, saying, "We believe that Mr. Caparro was obligated to disclose his relationship with [Glenayre] at or near the signing of his employment agreement and are disappointed that he did not do so."

　　Others who share that disappointment include a number of Atari shareholders. At the opening bell this morning, Atari shares traded at $2.30, off $0.64 from yesterday's closing price of $2.94. As of press time, the stock was at $2.45.

　　Pachter closed his memo saying he believed "that a sell-off today will create a buying opportunity, and we recommend that investors take advantage of this opportunity to establish positions in Atari."

　　Markovich was less optimistic. "We view the appointment of Mr. Bonnell as interim CEO with caution, based on his track record in recent months. We note that ATAR missed quarterly expectations and lowered fiscal year guidance twice, from late FY04 to early FY05, under Mr. Bonnell's leadership."