<![CDATA[Gawker: valleywag, roger mcnamee]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, roger mcnamee]]> http://gawker.com/tag/valleywag/rogermcnamee http://gawker.com/tag/valleywag/rogermcnamee <![CDATA[Did Apple's Ex-CFO Rat Out Steve Jobs?]]> Forbes has a cover story on how Steve Jobs got himself in hot water with the SEC over stock options. The magazine is part-owned by former Apple CFO Fred Anderson. Do the math.

Amid SEC charges that Apple management had shifted the dates of stock options to benefit executives, including Jobs, Anderson, and former general counsel Nancy Heinen, the company took an $84 million charge in 2006. Jobs and Apple settled a shareholder lawsuit for $14 million, but avoided trouble with the SEC. Anderson and Heinen paid $3.5 million and $2.2 million in fines respectively, without admitting guilt.

The episode caused a major rift between Anderson and Jobs. Anderson had left Apple in 2004, but stayed on the board until the scandal led to his resignation in 2006. In the meantime, Anderson had joined Elevation Partners, a private-equity firm in Silicon Valley. As the stock-options scandal grew, Anderson and Jobs pointed fingers at each other, at one point issuing dueling press releases shifting the blame. Anderson has long maintained that Jobs knew more about the options chicanery than he has let on.

Elevation, which also counts famed Valley investor Roger McNamee and U2 frontman Bono as partners, backed Palm, a rival to Apple in the smartphone business, and recruited a former top Apple executive, Jon Rubinstein, as Palm's executive chairman. No one in Silicon Valley honestly believes this is a coincidence.

Forbes is another Elevation investment. The May 11 story, written by Bill Barrett and teased on the cover, centers on the 118-page transcript of a three-hour interview Jobs gave SEC examiners trying a case against former Apple general counsel Nancy Heinen, which the magazine obtained at some difficulty through a Freedom of Information Act. In the interview with SEC examiners, Jobs complained that the board was not looking out for him and he had to ask for a generous stock-options package, but maintained that he was largely unaware of the backdating and ignorant of the accounting consequences. (Backdating is not illegal by itself, but requires notice to shareholders and a charge to earnings, neither of which Apple undertook at the time it backdated options.)

Excellent journalistic work on Barrett's part. But here's the question: How did Forbes know precisely which document to ask for? It always helps to have well-connected sources. And it's hard to imagine who would be better placed to know the details of the case than Anderson.

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<![CDATA[Wikipedia board vote eliminates longtime foe of site's commercialization]]> WikiThe nonprofit parent of Wikipedia, the Wikimedia Foundation, has dumped Florence Devouard as its chair and replaced her with board member Michael Snow, while also appointing Ting Chen, an editor of Wikipedia's German and Chinese editions. Venture capitalist Roger McNamee is surely grinning as he thrums his guitar: Devouard has long opposed efforts to profit off the volunteer-written encyclopedia, an idea advanced by McNamee, a cofounder of private-equity firm Elevation Partners. McNamee, whose partner Bono is a buddy of Wikipedia founder Jimmy Wales, who has helped broker large donations to the foundation, is believed to have given the board change his approval.

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<![CDATA[10 VC predictions from the Churchill Club]]> ChurchillClub.jpgYahoo, CNET, and Plaxo are old news, according to VC blogger Fred Wilson. He writes: "I suggest you ignore all of that and focus on what went on last night in San Jose at the annual Churchill Club Dinner," where venture capitalists Roger McNamee, Steve Jurvetson, Josh Kopelman and others predicted ten upcoming trends. VentureBeat took copious notes. We've trimmed them down to suit a VC's attention span:

  • Customer data stored by different service providers will be combined to create more intelligent services.
  • Oil will have increasing difficulty competing with biofuels made from cheap nonfood crops for transportation.
  • Water technology will replace abating global warming as a global priority.
  • The mobile device industry's migration to smart phones will produce great disruption for big industry players.
  • Booming market for healthy aging technologies.
  • Four-fifths of the world population will carry mobile Internet devices within five to 10 years.
  • Algorithms will be constructed to develop new industrial chemicals, new biofuels and eventually artificial intelligence.
  • The mobile phone is your most important device.
  • There is going to be a venture capital shakeout.
  • Within five years everything that matters to you will be available on a device that fits on your belt or in your purse
(Photo by jurvetson)]]>
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<![CDATA[Wikipedia gerrymanders its board]]> Sue Gardner, the power-hungry executive director of Wikipedia's nonprofit parent, the Wikimedia Foundation, has carried out the first phase of her master plan. She's orchestrated a reorganization of Wikipedia's board. The chief changes to the rulers of the world's most complete list of people affected by bipolar disorder: Only 30 percent of the board is now elected. Two board members will be appointed by Wikipedia's "chapters," country-specific nonprofits which wield power far greater than their actual numbers would seem to warrant. Jimmy Wales has been granted an unelected "community founder" seat. The other five board seats, three of them currently empty, can be filled by board appointees with no connection to Wikipedia. Which would make it easy for Gardner to stack the board with wealthy venture capitalists interested in profiting from Wikipedia's highly-trafficked website.

Not that she needs the help. The foundation's bylaws only require that a majority of its board members be "elected or appointed from the community." The spirit of the term "community" suggests those who actively edit Wikipedia; Wikipedia was originally conceived as a membership organization. But that plan was abandoned, the bylaws rewritten. The Wikimedia Foundation's board can define "community" as it sees fit.

By right, the board could declare that, say, Roger McNamee, the Elevation Partners cofounder who helped broker $1 million in donations recently, was a member of the community, by virtue of his financial support.

The current board, of which three out of seven members are elected, would likely oppose such a move. But three more Gardner-approved appointees could likely swing the vote the other way. And then the board could redefine "community," or just rewrite the bylaws altogether.

Only one seat is up for election in the short term. Conveniently, it is that of board chair Florence Nibart-Devouard, who has consistently led the opposition to Gardner's moves. She is unlikely to stand for reelection in July, we hear. Wikipedians may elect a new board member in protest, but at the cost of losing the most effective resistance they have to Sue Gardner's quiet takeover. (Users have started a toothless online petition.)

The most curious seat is Wales's. It is reserved for a "community founder," and according to Wikimedia vice chair Jan-Bart de Vreede, if Wales does not occupy it, it will go empty. Here's an amusing thought: Why not have Larry Sanger, whom some say has a better claim to founding Wikipedia than Wales, bid for the spot in December, when Wales's term expires?

If the board rejects Sanger for the "community founder" spot, it will have to admit the truth: Jimmy Wales gets a board seat not because he was elected to it. Not because he has any distinct competence. Not because he is popular with the chapters. No, Wales gets a board seat because he's special. This isn't gerrymandering. It's Jimmymandering.

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<![CDATA[Wikipedia receives $500,000 from another VC]]> Vinod KhoslaOrdinarily, this would be good news: Vinod Khosla, the former Kleiner Perkins venture capitalist, and his wife Neeru Khosla, have donated $500,000 to Wikipedia's nonprofit parent, the Wikimedia Foundation. But founder Jimmy Wales's dalliances with other VCs — chiefly Roger McNamee and Marc Bodnick of Elevation Partners — have cast a shadow over every dollar the organization receives. Is this one of the $500,000 donations McNamee recently said he helped broker? And if so, what do he and Khosla expect to get in return? For starters, keep a close eye on Wikipedia's articles on ethanol, a major business interest of Khosla's. Wales, ordinarily Wikipedia's front man, makes no appearance in the press release, quoted below:

*Wikimedia Foundation Receives $500K Donation*

''Vinod and Neeru Khosla, innovators in educational outreach, provide financial support to the Wikimedia Foundation.''

San Francisco, CA - March 24, 2008 - The Wikimedia Foundation, the non-profit organization behind Wikipedia, is delighted to announce it has received a $500,000 donation from philanthropists Vinod and Neeru Khosla.

"We are thrilled and very grateful," said Sue Gardner, Executive Director of the Wikimedia Foundation. "Vinod and Neeru share the Wikimedia Foundation's vision: a world in which every single human being can freely share in the sum of all knowledge. Today, they have moved us closer to making that vision a reality."

"Vinod and I are proud to help Wikipedia, a valuable global educational resource," said Neeru Khosla, co-founder and chair of CK12, a non-profit organization supporting the worldwide creation of "flexbooks," collaborative, open-source textbooks. "Wikipedia proves that mass collaboration works, and that small investments can reap extraordinary returns. We are happy to be a part of it."

The gift comes at a critical time in the history of Wikimedia, which has just relocated to San Francisco to be closer to Bay Area technical talent, like-minded non-profit organizations, and educational and research institutions.

"Moving to San Francisco was an essential step in the maturing of the organization," said Gardner. "Now that we are here, and have built a great team of smart people, we're well-positioned to make significant progress."

Wikipedia, the world's largest encyclopedia and one of the 10 most popular websites world-wide, is written, edited and maintained entirely by a global community of thousands of volunteers. It was founded in 2001 by Jimmy Wales. The Wikimedia Foundation, founded in 2003, has a staff of 15, and provides organizational support for Wikipedia and eight other collaboratively-created information projects.

In coming years, the Wikimedia Foundation plans to launch outreach projects designed to encourage contributions to Wikipedia from targeted groups such as academics, speakers of small languages, people in developing nations and older people. It also plans to increase the distribution of material from Wikipedia and its other projects in non-web-based formats such as DVDs and books, to provide information for people who are not online.

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<![CDATA[Jimmy Wales's $1,300 dinner with the VC]]> Everyone's beating up on Wkipedia founder Jimmy Wales for his shady dealings. But evidence has now arisen that if he's a money-grubber, he's not a particularly skilled one. When Wales turned in receipts for $30,000 in expenses charged to the Wikimedia Foundation, Wikipedia's nonprofit parent, among them was a $1,300 dinner at a steakhouse in Tampa. In attendance: Marc Bodnick, another Elevation Partners cofounder. Bodnick later introduced Wales to Bono. (His sister-in-law Sheryl Sandberg, then a Google exec, now Facebook's COO, helped connect Bodnick and Bono, a contact from her Washington days.) The foundation's board ultimately turned down Wales's request to get paid back for the dinner.

If only the board had known what would become of that dinner. Bodnick and Bono's colleague Roger McNamee later gave $300,000 to the Wikipedia organization personally and helped arrange another $1 million in donations. Let's see: $1,300 for $1.3 million. Leaving aside what Elevation Partners hoped to get for that money, that seems like a pretty good return. Jimbo, have you thought about resubmitting the dinner tab?

(Image via Turn on, tune in, take off!)

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<![CDATA[Jimmy Wales's bigger scandal: Elevation Partners]]> 17wiki.190.jpgThe New York Times has picked up Valleywag's extensive reporting on the ongoing Jimmy Wales scandal (How to decode the Times story: Whenever they say "a gossip Web site," they mean us.) While most of the story is a rehash, it does raise one interesting point: What's the relationship between Wikipedia and VC firm Elevation Partners? Roger McNamee of Elevation insists he's just acting as a donor and volunteer fundraiser in pulling in $1 million for Wales's Wikimedia Foundation nonprofit. But Wales admits in the article to proposing Wikipedia-branded business ventures like a trivia game or a TV documentary, with funding from Elevation Partners. Another plan we've heard: Changing the terms by which Wikipedia contributors add to the online encyclopedia to a more liberal Creative Commons license. That would make the site's content more readily reused in, say, printed works sold for profit. (Illustration by a newspaper)

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<![CDATA[As Chubby Wombat, Roger McNamee fails to rock]]> McNamee.jpgRoger McNamee founded Elevation Partners, a tech private-equity firm with $1.9 billion in assets. He can claim Steve Jobs, Bill Gates, Larry Ellison, Mark Zuckerberg as friends. Bono is his coworker. He earned a 700 percent return saving Seagate Technology in the 1990s. But according to Portfolio, McNamee can't succeed in the one thing he really loves: rock and roll.

Here's Moonalice and its lead guitarist Chubby Wombat — McNamee's onstage alter ego — playing "The Nectar." The band is made up of the best musicians money can buy (literally: McNamee pays them), but its sound, to my ears, died about five years before I was even born.




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<![CDATA[Wikiprofits on Wales's mind?]]> A tipster is telling us we got it right on why founder Jimmy Wales is moving Wikipedia to San Francisco: dollar bills. Tall stacks of them. Specifically, Wales is looking to tap the deep pockets of Wikipedia benefactor Roger McNamee of Elevation Partners, our source believes. You know, the firm U2 frontman Bono shills for. Our tipster writes that McNamee and Wales have plans to profit from Wikipedia. Curious, since Wikipedia's run by a nonprofit. The tip, after the jump.

I'm sure with their brains and resources, they've already figured out a way around Wikipedia's 501 (c) 3 status. Looks to me like Jimmy's about to be able to afford all the kimonos he wants now!

We think Wales might be talking to McNamee more about his for-profit venture Wikia than Wikipedia. But we're willing to listen if you know better.

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<![CDATA[What to do this week]]>

Tonight: LeWeb3 host and blogueur Loic Le Meur and blogger-cartoonist Hugh MacLoud host a dinner at Foreign Cinema in San Francisco's Mission District. Warning: The event may already be overbooked. [Eventbrite]

  • Tuesday: Pictured above: Moonalice, the band comprised of Elevation Capital partner Roger McNamee and former Saturday Night Live band leader GE Smith, performs a free lunchtime show in Union Square. [Moonalice]
  • Friendster and Socializr founder Jonathan Abrams leads the GeekSessions at the City Club of San Francisco. [Upcoming]

  • Wednesday: Lunch 2.0 hosts a happy hour at Facebook's offices in downtown Palo Alto. [Facebook]
  • Former MarketWatch columnist Bambi Francisco is among the all-women presenters at this month's San Francisco New Tech Meetup. [Eventbrite]
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