Report: “Al Gore’s convenient IPO”
Ron Grover at Business Week reports that Al Gore’s latest business deal doesn’t smell right:
Something about this deal just doesn’t sit right with me. Gore isn’t just taking piles of cash. According to the filing Gore, who is listed as executive chairman, and his CEO partner, lawyer-turned-entrepreneur Joel Hyatt, each loaned the company $1 million to get it started. They’ll get that back in the IPO. But the two guys also collect hefty salaries for a company that hasn’t shown a profit in three years—taking down $491,677 apiece last year in cash, plus bonuses of $550,000 each for, in Gore’s case, helping get the company new affiliate agreements, broadening exiting agreements, and putting together a management team. The two currently receive $600,000 a year in salary and are eligible for additional bonuses, according to the IPO filing.
By comparison, at the time of the Google IPO in 2004, its two founders were each taking home a total of $356,556 in salary and bonuses, while sitting on top of a company that had earned nearly $106 million the year before.
Outsize Shareholder Clout
What really sticks out to me, however, is that Gore and Hyatt, who started the company in 2002 (and jump-started it with a broken-down Newsworld International channel they bought for $70.9 million) will have the kind of hammer-lock control over the company decried by shareholder rights activists and many of the same unions that supported Gore for years. According to the filing, once the dust has settled Gore and Hyatt will control all of the company’s Class B shares, which give them 10 votes for every vote a common shareholder gets with a Class A share.
The company hasn’t said how many shares it will issue, so there is no way of knowing just how much control Gore and Hyatt will exercise. But the Google founders, who also control their company’s Class B shares, hold nearly 56% voting control of the company (of course, far as I know, they never ran for public office).
CurrentTV executives say they can’t comment during the IPO quiet period. But a source with knowledge of what the board was thinking says that it gave Gore and Hyatt B shares to maintain the channel’s editorial integrity and vision, and for advertisers to be sure of its future direction. The board, according to this source, believes Current TV isn’t a typical media company in that it has a mission to make sure young people can share their views. Other media companies, including the New York Times Co. (NYT) and Dow Jones (NWS), have issued B shares so that their founders could maintain their editorial voice as well. (The New York Times is now facing a proxy battle with its largest shareholder to elect its own shareholders in a battle of wills with the B shareholders.)
Sorry, but I don’t buy the rationale for this preferential treatment. This Class B share stuff just stinks, especially for a man of the people like Al Gore. “That’s hardly democratic—with a large D or a small d,” agrees University of Delaware corporate governance expert Charles Elson. “The irony is that this is coming from a Democratic leader.”
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I am offended that anyone would suggest that Al Gore; the inventor of the internet, Noble Peace prize recipient and leader on the front re: global warming could be involved in an underhanded deal. When more information comes to light you all we see what I see when I look at Al – an upstanding and very insightful human being. Now leave Al Gore alone.
/sarc
Where did they get the original $70 million to make the purchase to begin with? I am guessing a bank – maybe a venture capitalist? But, what was used for collateral? OK, they dropped $2 million as a down payment, considerably less than 5%. Were there any other investors?
Yep, voting control raises issues, but the real sexy story is always about the money.
Bill and Hill will be the first to get shares at $0.25 and sell at $50.00. Stinks like Pepe la Pue, (Sp on that one).
L
So, let me see, they’re collecting huge salaries from a company that doesn’t make money. I’m assuming here that it isn’t registered as a non-profit organization.
Talk about not passing the smell test!
Do you know how many Carbon Credits he can buy for $600,000?
Me either.
Hey Hillary, why didn’t Al tell us about this before? If our super delegates had 10 votes for every vote a common delegate had, we could have sown up the nomination a long time ago.
Ah, the great visionary looks off into the future with a dreamy Buddha expression. Remember him posed for that art decco, heroes-of-the-socialist-revolution photo at Nobel time? He reminded me of a pseudo Steve Reeves with his corpulent body stuffed into a Superman costume. I loved him so. Why Al, why?
I am not – I repeat NOT – defending AlGore. The man is brilliant, like it or not. His scam on carbon credits was just awesome. Create a nonprofit company that sells carbon credits then buy those credits from himself. He keeps his cash and gets a tax break at the same time whilst looking like he is supporting a charity. That is simply awesome (if you do not have a conscience).
Now, he will tie up another company while having the liberty of spreading his global warming farce to little kiddies who are scared of standing in front of a train coming to kill them. Sorry, he is freaking brilliant.
Our job is to educate our own children to keep them from being brain washed. It is already too late for them to dodge the carbon usage tax coming their way – thanks Democrats. The best they can hope for is to create their own nonprofit company and buy their credits from themselves. Good luck. Soon, there will be “approved” companies and guess who will control them? AlGore, wait and see.
MEMO TO: Charles Elson
It was irony the first time a Democrat cut a special deal for himself. Now it’s customary.
I agree. Give me CO2 over AlGore any day. Both are colorless and tasteless but at least CO2 is also odorless.
On the other hand, anyone stupid enough to invest in Al’s company deserves to lose his shirt. (Hmmm, I wonder if any of my mutual funds are planning to invest in this scam?)
Anybody have any idea what he’s gonna do when “Global Warming” becomes “Global Cooling”? I’ve heard some reputable scientists are predicting another mini-ice age is just around the corner. Maybe sell all those carbon credits back so folks can keep warm?
Either way, like soap said, he’s a genius. Slippery and conniving, but a genius nevertheless.
The old adage is true….follow the money, honey.
Epodug, “global warming” is out. “Global Cooling” is now in. It’s that time again. Like old clothes, if you keep them long enough, they’ll come back into fashion again. More and more “scientists” are going to the cooling camp now. Knowing Al, he’ll keep up the “warming” until it comes back into fashion…about 10-15 years from now. Then he’ll be able to say, “I told you so”, reap the rewards quickly, before we’re back to “cooling’again.
No that’s not irony that is the real world buddy. You’ve been an idealistic professor way too long. Need to take the crap out of your eyes and realize just how undemocratic those democratic leaders really are including the Gorecal.
what a shister..
I wish I could believe that “global cooling” is on the way. GW has not run its full course. How can we be taxed on carbon usage if the planet is cooling? It will be 50 years before the consensus will be; the planet is cooling too rapidly. Of course, by then, the rest of us will have figured it out because of blizzards in Miami. But, since we are too stupid to figure out blizzards in Miami mean things have cooled off, we will need the UN and our very own gooberment to tell us the obvious!
Will you guys quit picking on the 43rd President of the United States?!
/sarc off, Go Florida!
Watch is SHowy. I am in Florida and I did my part to keep him out!
I lived there too, and I da** sure tried to keep him out.
What I’m glad about is that no matter how many times the FL supreme court wanted to recount the *suspect* ballots, they still came out BooooooSH.
So again, I say Go Florida!!!
And how did you know my high school nickname was *howie*? Did ya hang around Ocala much in the ’80s?
Soap, SH – then does that mean that you “blame Bo-o-o-o-o-sh”? He IS, after all, according to the Goracle Disciples, to blame for “global warming” – now, “global cooling” – and, next, I suppose for not investing in The Church of the Living Goracle.
Come on, cpodug, BooooSH is to blame for everything, didn’t you know that?
/sarc off
Soap is absolutely right — Maybe Gore’s Pine Tree disguise was intentional. He sure does seem to be getting away with a big one, here, while the press corps worships at his feet. The guy has to be brilliant.
SHoward,
Naw, I have lived in Indian River County for 35 years now. SHowy was just a natural thingy for SHoward.
I will say this for Bush, he is working overtime to displace Carter as the worst POTUS ever. This is coming from someone who voted for him – twice. That may sound like a terrible thing until you consider the alternatives.
Yeah, that’s how howie evolved from Howard. Just kinda comes natural.
I have been thinking of late, and after my head stopped hurting from it I realized what you just stated seeems to be the case.
I like George Bush, I really do, but he is doing some of the most stupid things I think I have ever witnessed out of a president. Ex: “Okay, maybe the economy has slowed a little…” Talk about a master of the obvious, and a late one at that. And I live in SoCal. Let’s not even get started on the border…
However, I would opine he has a long way to go to catch Carter… I mean fall back..I mean, you know!
What’s that phrase?
“There’s a sucker born every minute.”
People like little Leo DiCaprio and those two Google founders, people who can afford to lose a few million, will gobble up the shares and run up the price of the IPO so only they and more of their friends can afford it. Then, because its the “Goracle” they will never question why it doesn’t make a profit.
I just said he was working overtime to displace him. Long or short way to go, he is working on it! I do not even think we can blame the lame duck claim on some of the stuff he has done of late. I wish that much were true. His latest veto’s are a little to little, a little too late. He should have had the pen working overtime!
I didn’t get the prospectus but I am sure that Al has a cushy job for his son with CurrenTV. I mean the man has done such a good job of educating Al III, I can confidently count on him to educate all of the other future drug abusers out there.
I started to write “Noone could top Carter” but then Obama’s in the running! Let’s stop him in November so we do not have a Carter redux.
But yes, GWB should be doing a lot of right things especially now that he is not up for reelection, to get me back to his side.
Completely agree with ya, Soap. Too little, too late.
Check out what mngirl said; She’s onto something that is really at the core of this BS: Being Enviro-Friendly is a game for the rich.
Carbon Credits, Fancy solar houses, etc., these are the kinds of things the wealthy can afford, so they can continue to live their extravagant lifestyles. People like me can’t buy carbon credits. What am I to do when my motorcylce exceeds the allowable CO2 output? Step down to a scooter or walk. My company car likely won’t be allowed on the road.
Which brings to mind: I work for a Car maker. I might be walking, anyway, due to being out of freaking-business!
Thanks, Gorea**!
Bush is no Carter. And, Carter wasn’t our all time worst President. Just worst in our times. Others in the running could be: Jackson, both Johnsons, Wilson, to name a few.
OPPS. Man of the people????
What amazes me is that no matter how shady, sleazy, dubious and downright crazy Al’s dealings are, his fans still worship at that shrine. No matter how sanctimonious or condescending, they still love him. No matter that he doesn’t practice what he preaches. They still swoon. What idiots.
He’s High Priest of the “Church of Global Warming”. Go to him for indulgences and be forgiven of your carbon “sins”. The people who can’t accept any God/religion have found a “church” they can love. Of course, he can do no wrong, and they swoon in his presence. We have this High Priest, and we have a new messiah (Obama). Now what could possibly go wrong, in this country?
Graysonret – you’re forgetting FDR. IMO, definitely the worst we’ve seen as far as ruining the country.
Amigoneus, you’re right.
My apologies. He should be up at No. 1. We’re still feeling the effects of his long adminstration today. But, I wonder if “1st Emperor” would be more appropriate. He certainly ran the country and all 3 branches of government, full of “yes” men/women.
For all of this, lord God…Al, none of it means anything.
Only the cause matters.
The global deity knows much of both.
Actually, if you will notice, much of the global warming/cooling talk has been incrementally changed to Global Climate Change so that they can keep up their facade no matter which way the weather turns. As was previously mentioned here Al “Jim Jones” Gore is not stupid and he has made certain that his followers will go not only all the way to Guyana with him but freely drink the kool-aid as well.
Ad for the worst president of all time? I would have to vote for the one who centralized power in a federal government taking the power from the states and the People though I would get a lot of grief about that … even here.
I just have one thing to tell Al Gore, it is March and it is snowing in Northern Texas…where is all that global warming he has been promising ua? How much fossil fuels does one suburban mom have to burn to get a tan down here BIG GRIN.
On-my-soap-box said:
I agree. To paraphrase Apu of The Simpson’s fame “Algore, you magnificent bastard!”
I just hope and pray that the gullible souls that actually believe anything Gore says find out how he has been using them for his own enrichment.
I believe his Nobel Prize was the final nail in the Peace Prize committee’s coffin. Talk about a worthless political award.
Alfred Nobel must be spinning in his grave. Gore will do more damage to the world than Nobel ever thought his dynamite would.
What is wrong with you people?
Algore is an ACADEMY AWARD WINNING movie mogul, now. He’s like Rob Reiner, or George Clooney.
HE DON’T HAVE TO ANSWER TO THE UNWASHED MASSES NO-MORE!
It’s 52 here, in No. Va.. We had 5 inches of snow all winter. Hurrah for global warming!!
How does one start their own “carbon credit” company anyhow?
Here in the Northeast, with heating oil at around $3.50/gallon, I will take all the global warming that comes my way.