USA Networks’ Baker Resigns After 18 Months Under Diller

After less than two years on the job, Barry Baker resigned Wednesday as the second-in-command to Barry Diller at USA Networks Inc., which owns a television station group, the Home Shopping Network, USA Network, Ticketmaster and several online businesses.

The timing of the departure, just 18 months after Baker joined the company, surprised even the USA managers who report to him. Hollywood executives said the resignation underscores the difficulty of working for Diller, whose style is confrontational and combative. Baker is known to be equally brash.

In an interview Wednesday, Baker said the two executives got along well, except for the usual “bumps along the way.” He said he wanted to be free to pursue opportunities--specifically, to run a company again.

Baker has an estimated fortune of $200 million, made primarily when he sold his River City Broadcasting to Sinclair Communications in 1989 for $1.25 billion. Before joining USA as president and chief operating officer, he was chief executive of Sinclair, which owns 64 television and 54 radio stations.

Baker’s departure comes as Wall Street speculates about USA Networks’ prospects after Seagram Co., which owns a 45% stake, agreed to be acquired by France’s Vivendi. Investors hope Vivendi will give Diller a freer hand to make acquisitions than did Seagram Chief Edgar Bronfman Jr., who vetoed several USA deals.

Baker said he had accomplished his goals at USA and would not be replaced. USA Networks will announce a reorganization today to divide the management responsibilities of the nine businesses that report to Baker. Sources speculated that USA Vice Chairman Victor Kaufman, Diller’s trusted financial deal maker, could end up with more power.

In a statement, Diller said Baker could stay indefinitely. “As good as he is as a chief operating officer, his history and his talents lie in being a chief executive,” Diller said.