Warner Music US, headed by Doug Morris, to oversee the three main record labels. Fearing the loss of autonomy and worried that he would be obliged to implement Morgado's "slash-and-burn" policy to streamline the label's staff and artist roster, he refused to carry out Morgado's orders and decided not to renew his contract. Ostin officially stepped down from Warner Bros. when his contract expired on December 31, 1994, although he stayed on as a senior consultant to Time Warner's chairman until August 1995. He later commented: Ostin's departure sent shockwaves through the company and the industry, and elicited glowing tributes from colleagues and competitors like Joe Smith and Clive Davis, and musicians like Paul Simon and R.E.M. It also triggered an exodus of Warner executives who had joined the company primarily because of Ostin. Next to go was Lenny Waronker—he was initially designated to succeed Ostin as chairman but he ultimately declined the job and left WBR soon after. Following a period of uncertainty and speculation, the two joined forces to establish a new label, DreamWorks Records. Waronker was replaced by ex Atlantic Records president Danny Goldberg, but his tenure proved short. Long-serving WBR executive Russ Thyret, who had joined the label in 1971 and worked closely with Mo Ostin for many years, was promoted to vice-chairman in January 1995. Gerald Levin forced Morgado to resign in May 1995 and he was replaced by HBO chairman Michael J. Fuchs. Fuchs sacked Morris a month later (sparking a US$50m breach of contract suit) and Warner Music US was dissolved. Morris' removal led to speculation that Ostin was being courted to return to WBR, but these reports proved unfounded, since Ostin and Waronker moved to DreamWorks soon after. Morris moved to MCA Records. Despite his close ties to Morris, Danny Goldberg was initially told he could remain as WBR president but he left the company in August 1995 after negotiating a settlement with Time Warner to terminate his five-year, US$20 million contract, which still had four years to run. He was subsequently appointed president of PolyGram subsidiary Mercury Records in October. Following Goldberg's departure Russ Thyret was promoted to chairman, CEO and label president. Fuchs himself was forced out of Time Warner in November 1995. In May 1997, Phil Quartararo took over as president of WBR, only weeks after he had left EMI's Virgin Records following a management shake-up there. The departure