Felix Salmon

Skype’s evil ways, cont.

June 27, 2011

The Skype/Silver Lake story is refusing to die, with Yee Lee’s revelations bringing out the same anonymous investor-group sources defending Skype’s actions. But if the defenders are comfortable in their anonymity, it seems only fair for me to share an anonymous email I got this morning from “Skype Insider”.

Upgrading Skype and Silver Lake to Evil

June 24, 2011

Last week, Bloomberg’s Joseph Galante published a story claiming that Skype investors in general, and Silver Lake in particular, were firing senior executives just before the company is sold to Microsoft, so that they don’t get their full share of the proceeds from the sale. This seemed pretty evil to me, but it wasn’t long before anonymous Skype investors started showing up on various blogs (SAI, TechCrunch, GigaOm) pouring cold water on the allegations, saying that the firings were all the doing of Skype’s CEO, Tony Bates, and had nothing to do with Silver Lake at all.

Beware Silicon Valley financiers, Skype edition

June 20, 2011

Tensions between owners and managers are nothing new; you might remember, for instance, the way in which Sequoia Capital forced Zappos to sell itself to Amazon over its founders’ wishes. But at least when the sale took place the executives got their full share of the proceeds — in contrast to what seems to be going on at Skype.

The difference between public and private stock markets

May 12, 2011

SecondMarket put on a conference in San Francisco this morning, where I got to talk to chief strategy officer (whatever that means) Jeremy Smith. I asked him about my theory that it’s easy to make big acquisitions if you’re public, using a hypothetical Facebook-Skype deal as my example.

How being public eases acquisitions

May 10, 2011

The acquisition of Skype by Microsoft comes just in time for the Capitalyze conference in San Francisco, which I’m sure will be talking about this:

How Congress works for you, private-equity edition

May 8, 2011

I had a long discussion at lunch today talking about my theory that it’s just as well the Basel III process was ill-publicized and depoliticized. Because when issues get onto Congress’s radar, the quality of debate can be low indeed. Take this debate between two Democrats on the question of whether private-equity funds should register themselves with the SEC:

Dennis Berman’s ethics

April 18, 2011

Last week, Ira Stoll took issue with Dennis Berman’s column on SharesPost and SecondMarket, on the grounds that Berman lied about his own identity: he pretended to be his late grandmother. Stoll likened Berman’s behavior to Project Veritas’s entrapment of NPR — something the WSJ itself said failed to “meet the ethical standards of elite journalistic institutions, including of course The Wall Street Journal”.

How SecondMarket works

April 12, 2011

I spent most of this morning at SecondMarket, having a long conversation with Adam Oliveri, the person in charge of their private company market. That’s the part of the company which gets the most attention: it’s where stock in companies like Twitter and Facebook change hands, for instance. I learned a huge amount while I was there, and have now changed my mind on whether Facebook is going to go public: I finally understand exactly why companies need to do an IPO once they have more than 500 shareholders.

Should the SEC try to boost the IPO market?

April 11, 2011

Clare Baldwin and Sarah Lynch are unambiguous: “As US regulators review rules on shares issued by private companies,” they write, “they must not make it too easy for hot Internet companies such as Facebook or Twitter to avoid the scrutiny that goes along with an initial public offering.”