AllThingsD » investigation http://allthingsd.com Sun, 27 May 2012 01:54:58 +0000 en hourly 1 http://wordpress.org/?v=3.3.2 http://allthingsd.com/theme/images/logo-rss.jpg All Things Digital http://allthingsd.com/ 144 22 Former CEO Thompson Might Be Gone, But Internal Investigation Into ResuMess Still a Hot Potato at Yahoo http://allthingsd.com/20120522/former-ceo-thompson-might-be-gone-but-investigation-into-resumess-still-a-hot-potato-at-yahoo/ http://allthingsd.com/20120522/former-ceo-thompson-might-be-gone-but-investigation-into-resumess-still-a-hot-potato-at-yahoo/#comments Tue, 22 May 2012 16:03:16 +0000 Kara Swisher http://allthingsd.com/?p=210917

While former Yahoo CEO Scott Thompson fades from the tech scene — besides getting jacked from the top job at the Silicon Valley Internet giant, he’s also just come off two tech boards he had served on — the investigation over his hiring and how a fake computer science degree got into the company’s regulatory filings continues.

While the quick-fire controversy burned Thompson, as well as now former Yahoo director Patti Hart, the special committee of independent board members is still at work trying to figure out how such a mess was made in the first place.

And, more importantly, who knew what when and told whom.

At the time the committee was announced, Yahoo said it would “conduct a thorough review of CEO Scott Thompson’s academic credentials, as well as the facts and circumstances related to the review and disclosure of those credentials in connection with Thompson’s appointment as CEO.”

The special committee is chaired by Yahoo’s new Chairman Fred Amoroso and includes John Hayes and Thomas McInerney, two independent directors who joined the board in April.

Yahoo also hired independent counsel Terry Bird of the law firm Bird, Marella, Boxer, Wolpert, Nessim, Drooks and Licenberg in Los Angeles to handle the inquiry.

The company also noted at the time that “the special committee and the entire Board appreciate the urgency of the situation and the special committee will therefore conduct the review in an independent, thorough and expeditious manner. The Board intends to make the appropriate disclosures to shareholders promptly upon completion of the review.”

Gripped by urgency myself, I have grown weary waiting by the phone for some official answers, which sources said will not be forthcoming for some time.

But since I am the most curious of cats — uh-oh! — I started dialing around on my own to find out what’s what.

And, according to sources — especially since Thompson has settled with Yahoo and will not get severance due to the academic falsehood — the big focus is now centering on if the company’s staff screwed up the background check of his academic credentials, thus allowing it to get into its official filings with the Securities and Exchange Commission and also on Yahoo’s corporate Web site.

When Thompson was hired from eBay, where he was president of its PayPal payments division, the online commerce company had the correct bio information in its SEC filings, although not on its Web site or in its PR materials.

The question is: Did someone from Yahoo simply rely on Web bios and not check eBay filings and did anyone ever re-check Thompson’s college records? (Note: It took me 15 minutes flat to find out he did not have such a degree at Stonehill College in the Boston area.)

If lazy checking was the case, it spells rank incompetence on the part of staffers, as well as Hart, who headed the search after Yahoo fired its previous CEO Carol Bartz last fall.

A much more troubling line of inquiry taking place is aimed at the possibility that someone at Yahoo did discover the discrepancy in Thompson’s resume and either did not report it up the chain of command or did and it was either lost or ignored or, well, worse.

While this certainly ain’t Watergate, such a situation would be very hard for Yahoo to explain away as easily to shareholders, especially potentially litigious ones. As it is always said, the coverup can often be more damaging than the crime itself.

And, if it is determined by the special committee that certain employees knew of Thompson’s resume inaccuracy, it will most certainly result in dismissals of Yahoo employees.

The focus on the committee — which truly cannot sweep this under the rug, if it occurred in this much more serious scenario — is most obviously the legal department of Yahoo, which is responsible for making certain filings are accurate.

Also under scrutiny is the quickness of the hiring of Thompson.

Among the questions is how much vetting was done and whether adequate questions about him were asked among a variety of possible sources.

When he was picked in January, Thompson was a dark-horse candidate for many, including some Yahoo board members.

In fact, he was not on the initial headhunting lists prepared by outside talent search firm Heidrick & Struggles.

That’s because Heidrick had placed Thompson at eBay in mid-2000 and could not then recommend him to Yahoo. As it turned out, Thompson took it upon himself to cold email Yahoo board member and Intuit CEO Brad Smith about the job, who then passed Thompson’s interest to Hart.

Heidrick had no involvement in the checking of Thompson, although he later blamed the firm in a public meeting with Yahoo employees for putting the error in his bio in the first place from when he was hired at eBay. Heidrick quickly called the accusation “verifiably not true” in a memo to its own employees.

Sources said that meant that the firm had a resume that Thompson had submitted to it that also contained the error.

But the central mystery of how that mistake appeared on his bio will likely remain just that without further explanation from Thompson.

In a radio interview in 2009, he did not correct a specific question about the twin degrees he appeared to have held and seemed to even agree with the show’s host, Moira Gunn, about them.

Later, she told me in a video interview that Thompson had clearly indicated to her in the prep for that interview that he indeed had a computer science degree.

Still, it is still not clear — and may never be — who put the faux computer science credential on his resume in the first place.

So, with all apologies to Winston Churchill: It might remain a riddle wrapped in a mystery inside an enigma.

]]> http://allthingsd.com/20120522/former-ceo-thompson-might-be-gone-but-investigation-into-resumess-still-a-hot-potato-at-yahoo/feed/ 0 Facebook's Latest S-1 Amendment Confirms Increased Share Price Range http://allthingsd.com/20120515/facebooks-latest-s-1-amendment-confirms-increased-share-price-range/ http://allthingsd.com/20120515/facebooks-latest-s-1-amendment-confirms-increased-share-price-range/#comments Tue, 15 May 2012 12:38:36 +0000 Mike Isaac http://allthingsd.com/?p=208242 Just like we reported yesterday, Facebook filed an amendment to its S-1 early on Tuesday morning, upping its estimated share price range to an estimated $34 to $38.

That brings the company’s highest valuation to just above $100 billion.

In all, Facebook will offer upward of 388 million shares — which includes an additional 50.6 million shares added Tuesday — raising $14.7 billion in the IPO.

Facebook also notes that while the company expected its recent acquisition of Instagram to close by the end of the second quarter, it now hopes to close the deal by the end of 2012. As reported last week by the Financial Times, the FTC launched a routine investigation looking into the acquisition, which would most likely delay the deal until well after Facebook’s initial estimated time frame.

Expect the official pricing to occur this Thursday, according to our sources, with $FB to debut on the Nasdaq exchange this Friday.

]]> http://allthingsd.com/20120515/facebooks-latest-s-1-amendment-confirms-increased-share-price-range/feed/ 0 Best Buy Founder to Step Down in Wake of Inquiry http://allthingsd.com/20120514/best-buy-founder-to-step-down-in-wake-of-inquiry/ http://allthingsd.com/20120514/best-buy-founder-to-step-down-in-wake-of-inquiry/#comments Mon, 14 May 2012 16:41:23 +0000 Miguel Bustillo http://allthingsd.com/?p=207739 Best Buy Co.’s founder, Richard Schulze, will step down as chairman next month after an internal probe found that he didn’t alert other directors that his handpicked successor as chief executive, Brian Dunn, was allegedly having an inappropriate relationship with a female employee.

The struggling electronics retailer disclosed that its board-supervised investigation into Mr. Dunn concluded he engaged in an “extremely close personal relationship” with a 29-year-old subordinate that “negatively impacted the work environment,” though it found no evidence that he misused company assets.

Read the rest of this post on the original site »

]]> http://allthingsd.com/20120514/best-buy-founder-to-step-down-in-wake-of-inquiry/feed/ 0 Exclusive: Yahoo's Thompson Out; Levinsohn In; Board Settlement With Loeb Nears Completion http://allthingsd.com/20120513/exclusive-yahoos-thompson-out-levinsohn-in-board-settlement-with-loeb-nears-completion/ http://allthingsd.com/20120513/exclusive-yahoos-thompson-out-levinsohn-in-board-settlement-with-loeb-nears-completion/#comments Sun, 13 May 2012 15:59:24 +0000 Kara Swisher http://allthingsd.com/?p=207290

Yahoo’s embattled CEO Scott Thompson (pictured here) is set to step down from his job at the Silicon Valley Internet giant, in what will be dramatic end to a controversy over a fake computer science degree that he had on his bio, according to multiple sources close to the situation.

The pair will apparently say he is departing for “personal reasons.” Sources said that Thompson will be claiming to be leaving due to a serious illness that he recently discovered he had.

But the evolving crisis — which is just over a week old — centered on his botched resume and how he handled the thorny issue is the key reason for the abrupt end to his tenure as a CEO.

Thompson’s likely replacement on an interim basis will be Yahoo’s global media head Ross Levinsohn, who most recently also ran its Americas unit, including its advertising sales.

In addition to the management upheaval, Yahoo’s board is closing in on a settlement with the man who discovered Thompson’s misstep, activist shareholder Daniel Loeb of Third Point, said sources.

The situation could change, since Yahoo’s full board still has to meet this morning to officially approve the sweeping changes at the long-troubled company.

But, if it is, this development goes a long way toward fixing some of what has been ailing Yahoo recently.

And it’ll also be a stunning victory for Loeb (pictured here), since the pugnacious hedge fund investor is set to get three board seats from a slate proposed by him as part of a proxy fight aimed at Yahoo. The new Yahoo directors will be media exec Michael Wolf and turnaround specialist Harry Wilson. Loeb’s fourth selection — former NBC head Jeff Zucker — will withdraw.

The five current Yahoo directors — who were to step down at the company’s annual meeting this summer — will leave the board effective immediately, sources said, to make way for the Third Point selections.

Finally, Yahoo’s recently added director Fred Amoroso will be named chairman of the board.

Amoroso is the director who has been conducting the investigation into the issues raised by Loeb about how the fake academic credentials got in Thompson’s public bios, as well as in Yahoo’s regulatory filings, and also the hurried circumstances around his hiring in January.

Those mysteries — read, screw-ups — might never be solved now, although Thompson made a convoluted attempt to explain it all in two awkward employee meetings at the end of last week. In those gatherings, according to numerous sources, he blamed a headhunting firm for introducing the mistake when he was being hired for a job at eBay in the mid-2000 timeframe.

That company, Heidrick and Struggles, slapped back last week with an internal memo, noting that Thompson’s claim was “verifiably not true.” Sources said that Heidrick told Yahoo’s board that it was in possession of a resume that Thompson had apparently submitted showing the inaccurate CS degree on it.

That memo, impugning Thompson’s credibility, was one of many that piled on to create an impossible situation for the Yahoo board, related to his leadership ability going forward.

Thompson had also previously issued a Yahoo statement, in which he apologized for the “distraction” caused by the problematic resume, but not for the mistake itself.

And, initially, Yahoo — under his direction — had called the borked resume an “inadvertent error.”

Such fumbling to fix the situation was among the many other issues that the board has been considering relating the ability of Thompson to remain in his job. Also of importance was the sinking morale of Yahoo employees, who had largely rejected Thompson’s excuses in the ResuMess scandal.

Internal message boards at Yahoo lit up all last week, with staffers largely rejecting his explanations. In addition, a number of top execs and engineers approached the board calling for Thompson’s firing.

While that’s not precisely what happened here, it’s close enough to describe Thompson’s departure as inevitable.

All this change comes in the wake of a massive restructuring he was in the midst of at Yahoo, after 2,000 employee layoffs.

Thompson was pushing forward a vision of adding a much more significant data and commerce element to Yahoo’s largely ad-based business.

That is likely to be less stressed under media-focused Levinsohn, who will be essentially trying out to be the permanent CEO.

Well known in the media and advertising communities, he has worked at a number of big online efforts over many years.

According to his bio at Yahoo, where he arrived in 2010:

He previously served as the President of News Corporation’s Fox Interactive Media, where he was responsible for the day-to-day operations, strategy and acquisitions that helped transformed the company into a leader in digital media. He also held senior management positions with AltaVista, an early pioneer and leader in search, CBS Sportsline where he oversaw all content and development for the top rated sports site, and HBO where he launched and oversaw a unit developing new programming and revenue streams. Levinsohn also was the co-founder and managing director of Fuse Capital, an investment and strategic equity management firm focused on investing in and building digital media and communications companies.

Levinsohn sits on the board of Freedom Communications and the Bogart Pediatric Cancer Research Program. He holds a Bachelor of Arts in Communications from The American University.

So far in my checking, Levinsohn’s resume is accurate.

More to come, obviously.

I have emails and texts and calls into everyone for comment, but apparently they are all out at a Mother’s Day brunch (except me).

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]]> http://allthingsd.com/20120513/exclusive-yahoos-thompson-out-levinsohn-in-board-settlement-with-loeb-nears-completion/feed/ 0 Is He In or Is He Out? Crunchtime for Scott Thompson at Yahoo. http://allthingsd.com/20120511/is-he-in-or-is-he-out-crunchtime-for-scott-thompson-at-yahoo/ http://allthingsd.com/20120511/is-he-in-or-is-he-out-crunchtime-for-scott-thompson-at-yahoo/#comments Fri, 11 May 2012 15:15:28 +0000 Kara Swisher http://allthingsd.com/?p=206889

While he has only been CEO of Yahoo for less than five months, in the next several days Yahoo CEO Scott Thompson is facing perhaps the most critical moment of his short tenure.

According to sources with knowledge of the situation, the board of Yahoo is not likely to take long in assessing whether he will stay or if he will be let go, due to a controversy around how a non-existent computer science degree got on his bio and also in Yahoo regulatory filings.

A special committee of independent directors is now investigating the matter, including trying to assess the damage has had on Thompson’s ability to lead the Silicon Valley Internet giant.

How quickly the board moves is likely to be a sign of their intent. If within the next days, it is likely to let the former president of eBay’s PayPal payments unit go and replace him with a current company exec; if it waits longer and shows some public support of him — which the board has not done since the scandal erupted — Thompson’s chances are better that he will only be given some sort of censure.

One important task is also closely considering the impact of possible legal problems related to Thompson and others signing documents with the Securities and Exchange Commission that were not accurate.

One thing is clear from interviews with multiple sources, many members of the board have not been happy with how Thompson has handled the matter since activist shareholder Daniel Loeb of Third Point uncovered the problem a week ago.

While first tossing the borked bio as an “inadvertent error,” Thompson was then largely silent about the issue with staff, despite being in close meetings with them, which caused stress among key execs.

Then, he made a public announcement in which he apologized for only the “distraction” caused by the incident and not the error itself as some had hoped he would.

Yesterday, apparently feeling it was time to try to explain things face-to-face, Thompson made another attempt to explain what happened in two separate meetings with his direct reports and then his senior staff, apparently trying to get through to employees that he did not fake his resume nor did he give an inaccurate bio to Yahoo when he was being hired for the job earlier this year.

Thompson thought it was time — now that the board investigation was underway — to answer questions directly, said a source.

Among other things, Thompson gave a somewhat convoluted explanation that it appeared in his bio due to a misunderstanding during an interview with a headhunting firm. And that he never noticed it once it proliferated And that when an NPR interviewer asked him directly about his CS degree, he did not want to correct her in mid-discussion — although others report he said he did not hear the question fully.

Sources said Thompson — who is on the midst of initiating changes across a large and troubled organization, after laying off 2,000 employees — thought the sessions went well, that he clearly communicated that he was taking blame for the problem and its repercussions. Those sources also noted that he received support for doing so after the talks.

But, more than a dozen others I interviewed who were listening remotely — some of whom I sought out and some who contacted me directly — thought Thompson’s complex explanation was deeply problematic and that he tried to foist the blame on others rather than on himself.

Every one of these people expressed the need for him to step down to allow Yahoo to move forward.

What the board thought about the performance is still not clear, said sources, but things are coming down to two distinct scenarios.

The first is a quick parting of the ways with Thompson, within days, either for cause or via a negotiated settlement. Others at Yahoo involved with perpetuating the mistake in the bio are also at risk.

This option is perhaps the more likely at this moment, unless the scandal dissipates and employees continued rancor over the situation can be assuaged soon.

In this case, sources said, Thompson will be replaced by a current board member or a member of the top staff. When directors fired Carol Bartz last fall, CFO Tim Morse became interim CEO and he is one of the likely candidates for the job again.

The second scenario centers on needing Thompson to complete a number of complex transactions related to the sale of Yahoo’s Chinese assets and its re-negotiations with Microsoft over its troubled search partnership, among other things.

In that case, Thompson will be censured in some manner by the board and will also probably have to endure some punishment for allowing false regulatory documents to be filed by Yahoo. Others at Yahoo will also be subject to the same treatment in such an outcome.

How will it turn out?

Only board member Patti Hart has so far paid for her faulty vetting of Thompson, stepping down from the board earlier this week.

But whether she will be the only shoe to drop in what has turned out to be a bizarre wildfire that as raged across Yahoo’s troubled landscape remains to be seen.

Thus, most definitely watch this space this weekend.

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]]> http://allthingsd.com/20120511/is-he-in-or-is-he-out-crunchtime-for-scott-thompson-at-yahoo/feed/ 0 Exclusive: Yahoo Director in Charge of Botched CEO Vetting to Step Down From Board http://allthingsd.com/20120508/exclusive-yahoo-director-in-charge-of-botched-ceo-vetting-to-step-down-from-board/ http://allthingsd.com/20120508/exclusive-yahoo-director-in-charge-of-botched-ceo-vetting-to-step-down-from-board/#comments Tue, 08 May 2012 15:50:13 +0000 Kara Swisher http://allthingsd.com/?p=205076

CSLie has claimed its first victim, although the mystery is still unsolved.

Patti Hart — the Yahoo director in charge of the search that resulted in the hiring of Scott Thompson as its CEO, making her directly responsible for a clearly botched vetting of his academic record — will not stand for re-election to the board at the next annual meeting, according to sources close to the situation.

Hart — who is CEO of International Game Technology, which makes electronic gaming equipment and systems products — is resigning. Apparently, said sources, her own board asked her to remove herself from the Yahoo mess to better focus on the company she actually runs.

But she is perhaps just a few steps ahead of being pushed, given her key role in the hiring of Thompson, who was president of eBay’s PayPal payments unit when he cold-emailed Yahoo director and Intuit CEO Brad Smith seeking the job.

A Yahoo spokesman declined to comment.

[UPDATE: Yahoo confirmed the inevitable departure later in the day and said the Yahoo board would have nine members going forward. Hart also released a statement, confirming the move.]
Hart, who came to the Yahoo board in 2010, has been head of its corporate governance and nominating committee.

The departure makes her the first casualty — but definitely not the last — of the controversy over how a fake college degree managed to get in Yahoo’s regulatory filings via Thompson’s inaccurate bio.

The issues around how Thompson was hired — including how background checks on him failed to discover that he never got a CS degree from the Boston area’s Stonehill College, as his longtime bio on eBay had claimed — are part of a new investigation by the board.

That will be officially announced later today, along with the hiring of an outside law firm to conduct the probe, which will be headed by independent director Fred Amoroso.

[UPDATE: Yahoo officially said it was forming a special committee to look at Thompson's bio snafu and the circumstances around his hiring. Along with Amoroso, the other members are John Hayes and Thomas McInerney, independent directors who joined the board in April.

"The special committee and the entire Board appreciate the urgency of the situation and the special committee will therefore conduct the review in an independent, thorough and expeditious manner," a statement from Yahoo said.

Interestingly, the statement did not include a show of support for Thompson, which often happens in such circumstances.]

They will have a lot to investigate. Such as this mystery: Thompson’s correct bio appeared in filings eBay made with the Securities and Exchange Commission, while Yahoo’s similar documents were inaccurate about his educational credentials.

Also under scrutiny: How the falsehood was added to Thompson’s public resume, and who put it there; why Thompson never noticed the error, there since at least 2004; why he declined to correct it when asked directly about it; and who at Yahoo might have known about the problem before the hiring.

It’s a basic case of who, what, where, when and how. And, most of all, why anyone would make such a dumb mistake.

Hart would seem to have all the answers to that, along with a forensic firm that worked on the vetting. Key Yahoo staffers were also involved, said sources, although its headhunting firm on the CEO search, Heidrick & Struggles, was not used in relation to Thompson.

Presumably, there is a paper trail of some sort, which was the subject of a legal demand by activist shareholder Daniel Loeb of Third Point yesterday. He uncovered the bio error last week, in the middle of pressing a proxy fight to garner board seats.

Loeb’s allegations also nailed Hart in much-less-egregious padding of her own college record, making it appear as if she had economics and marketing degrees. She has one in business administration, with “specialties” (Yahoo’s ridonkulous word, not mine) in economics and marketing.

While Hart’s leaving might assuage some, providing a convenient scapegoat to the bizarre situation, this is by no means over for Yahoo or Thompson.

Another increasingly potent issue is the ever-declining morale at the Silicon Valley Internet giant over the company’s odd response — it initially called the bio problem an “inadvertent error,” without further explanation — and also Thompson’s lack of transparency on the issue.

He released an email to employees last night, apologizing for the “distraction” of the resume issue, but not for the error itself.

That, and other of Thompson’s actions — he has been described to me, by many close to the situation, as defiant over the issue, and as blaming Loeb for conducting a personal vendetta — did not sit well with many, both inside and outside Yahoo.

A Yahoo spokeswoman told me earlier this week that there is much support for Thompson internally and externally, but declined to provide specifics.

But message boards I read were mostly negative about him, as are a plethora of direct emails to me on the situation. One clever commenter on this site bemoaned that Thompson might get off “Scott-free.”

Ouch! Nonetheless, the atmosphere at Yahoo is indeed unsettled.

“Sentiment from employees is unanimous that he must go,” said a Yahoo employee, who has no personal agenda that I can grok, in a common refrain. “He clearly knew and lied for years; and his handling since exposed has been unacceptable.”

Unacceptable or not, though, Hart is the only one going for now. But stay tuned.

Until then, here’s an appearance I made today on WSJ.com to talk about Hart’s departure:


[ See post to watch video ]

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]]> http://allthingsd.com/20120508/exclusive-yahoo-director-in-charge-of-botched-ceo-vetting-to-step-down-from-board/feed/ 0 CEO Says Sorry to Yahoos for Borked Bio "Distraction" -- But Will Mea Culpa Work Without an Apology for Error? (Memo) http://allthingsd.com/20120507/ceo-apologizes-to-yahoos-but-will-the-mea-culpa-work-without-an-explanation-for-the-borked-bio-memo/ http://allthingsd.com/20120507/ceo-apologizes-to-yahoos-but-will-the-mea-culpa-work-without-an-explanation-for-the-borked-bio-memo/#comments Mon, 07 May 2012 23:59:45 +0000 Kara Swisher http://allthingsd.com/?p=204971

He’s sorry. Deeply regrets. Apologizes. Takes full responsibility for the unfortunate distraction to the people.

No, it’s not a scandal-ridden politician caught in some compromising position, but Yahoo CEO Scott Thompson talking about the hubbub created by the addition of a fake computer science degree on his bio.

This kind of move is, of course, PR 101, but it still took Yahoo several days after activist shareholder Daniel Loeb uncovered the resume problem, which the Silicon Valley Internet giant said was an “inadvertent error.”

In his new memo, which comes after a terse one on Friday, Thompson said he was upset by how the controversy has impacted the company.

“As I told you on Friday, the board is reviewing the issue and I will provide whatever they need from me. In the meantime, I want you to know how deeply I regret how this issue has affected the company and all of you,” he wrote. “We have all been working very hard to move the company forward, and this has had the opposite effect. For that, I take full responsibility, and I want to apologize to you.”

It is interesting to note that he said nothing in the new email about being actually sorry for the still-mysterious inaccuracy in his bio.

It was present since 2004 when he worked at eBay and also somehow got into the Yahoo regulatory filings after he was hired earlier this year.

Presumably, that information is to come after an investigation by Yahoo’s board, headed by independent director Fred Amoroso, which is proceeding now.

It will be announced officially tomorrow, but it is already in the works, as Thompson noted.

Earlier today, Loeb demanded all books and records about the circumstances of Thompson’s hiring and has made hay out of the issue.

To calm the story, said Thompson to his new troops: “I am hopeful that this matter will be concluded promptly.”

Unfortunately for him, that hope is probably also going to turn out to be inaccurate.

But read it for yourself. Here’s the internal memo that just went out to all Yahoo employees from beleaguered Thompson, which I obtained from the company.

Yahoos:

I wanted to share some additional thoughts with you related to the disclosure of my academic credentials.

As I told you on Friday, the board is reviewing the issue and I will provide whatever they need from me. In the meantime, I want you to know how deeply I regret how this issue has affected the company and all of you. We have all been working very hard to move the company forward, and this has had the opposite effect. For that, I take full responsibility, and I want to apologize to you.

In my note Friday, I said I would be focused on continuing to do what needs to get done. That’s because I feel I owe it to all of you to make sure that nothing disrupts the progress we’ve made in just a few short months due to all of your focus, commitment, and hard work. As you’ve heard me say many times, we have a tremendous business with incredible assets, and we can win by putting our customers first. The progress I shared with you in the first quarter should make clear that we intend to move fast and deliver on the potential of the business for our customers, shareholders, and all of you.

I know the board plans to conduct the review thoroughly and independently, and I respect that process. I am hopeful that this matter will be concluded promptly. But, in the meantime, we have a lot of work to do. We need to continue to act as one team to fulfill the potential of this great company and keep moving forward. You have my word that all my energy and attention will be on that mission.

Scott

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]]> http://allthingsd.com/20120507/ceo-apologizes-to-yahoos-but-will-the-mea-culpa-work-without-an-explanation-for-the-borked-bio-memo/feed/ 0 Buffett Comments on Trust Issue in Yahoo CEO BioGate: "You've Got a Problem" http://allthingsd.com/20120507/buffett-comments-on-yahoo-ceo-biogate-calling-trust-issue-a-problem/ http://allthingsd.com/20120507/buffett-comments-on-yahoo-ceo-biogate-calling-trust-issue-a-problem/#comments Mon, 07 May 2012 16:44:06 +0000 Kara Swisher http://allthingsd.com/?p=204521

Activist shareholder Daniel Loeb of Third Point just got an unlikely and powerful ally in his proxy fight against Yahoo: Berkshire Hathaway’s famed Warren Buffett.

In a wide-ranging interview on CNBC this morning, when asked about the controversy, Buffett said about the Silicon Valley Internet giant’s excuse that the addition of a false computer science degree to Yahoo CEO Scott Thompson’s bio was an “inadvertent error”:

“It doesn’t sound like an inadvertent error … If I thought as a director, if I thought that an officer had consistently misstated some fact to me, I think I’d probably do something about it,” said the legendary investor, in part, who also noted he did not know all the facts.

Still, said Buffett: “If you can’t trust the people you’re working with, you’ve got a problem.”

Ziiiiing, because if the sage of Omaha thinks it’s bad, it has moved to worse.

And, indeed it has — earlier today, Loeb lobbed a legal demand for information about Thompson’s hiring and more.

Yahoo’s board is conducting an investigation into the matter, led by independent director Fred Amoroso.

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]]> http://allthingsd.com/20120507/buffett-comments-on-yahoo-ceo-biogate-calling-trust-issue-a-problem/feed/ 0 Loeb Lobs Lawsuit, as Expected, at Yahoo's Borked Bio Mess http://allthingsd.com/20120507/loeb-lobs-lawsuit-as-expected-at-yahoos-borked-bio-mess/ http://allthingsd.com/20120507/loeb-lobs-lawsuit-as-expected-at-yahoos-borked-bio-mess/#comments Mon, 07 May 2012 16:23:59 +0000 Kara Swisher http://allthingsd.com/?p=204506

Botched CEO bio. Activist shareholder. Screwy board of directors. Mix it all together and what do you get?

More legal filings, natch!

This — as I reported this weekend would happen today — from Dan Loeb of Third Point, which is waging a proxy fight against Yahoo.

The aggressive hedge-fund investor — who owns close to 6 percent of Yahoo — recently scored a direct hit by revealing that new CEO Scott Thompson had added a faux degree in computer science to his bio, which somehow made its way into regulatory filings of the Silicon Valley Internet giant.

This, despite a supposed thorough vetting by Yahoo’s board of the former president of eBay’s PayPal payments unit.

Not so much, as it turns out — which is why Loeb is asking for all the information about Thompson’s hiring process and more.

Third Point said it was making a demand “under Section 220(b) of the Delaware General Corporation Law to inspect books and records relating to the hiring of CEO Scott Thompson, the appointment of Patti Hart to the Yahoo! Board, and the selection of Board Members Peter Liguori, John Hayes, Thomas McInerney, Maynard Webb, Jr., and Fred Amoroso.”

And its press release added:

“Third Point believes that Yahoo! shareholders and employees will be best served if the Board accepts responsibility quickly for this latest debacle … We believe that this internal investigation by this Board must not be conducted behind a veil of secrecy and shareholders deserve total transparency.”

Well, it looks like it will eventually be all out in the open, what with all the legal motions flying.

Expect a Yahoo response soon, which sources said will focus on a board investigation — using an outside law firm, and headed by independent director Amoroso.

Here you go on Loeb’s shot today:

Third Point May 7 Demand Letter Release

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]]> http://allthingsd.com/20120507/loeb-lobs-lawsuit-as-expected-at-yahoos-borked-bio-mess/feed/ 0 India Launches Antitrust Probe of Google http://allthingsd.com/20120507/india-launches-antitrust-probe-of-google/ http://allthingsd.com/20120507/india-launches-antitrust-probe-of-google/#comments Mon, 07 May 2012 12:00:16 +0000 Amol Sharma and R. Jai Krishna http://allthingsd.com/?p=204340 India has launched an antitrust probe of Google Inc.’s online advertising business to investigate potential anti-competitive practices, according to government officials familiar with the matter.

The probe, which could take several months to complete, is initially focused on AdWords — Google’s flagship advertising product and main source of revenue. But the agency conducting the investigation, the Competition Commission of India, could expand it to scrutinize other Google services if it sees fit, the officials said.

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]]> http://allthingsd.com/20120507/india-launches-antitrust-probe-of-google/feed/ 0 Google Discloses a Pair of Overseas Probes http://allthingsd.com/20120427/google-discloses-a-pair-of-overseas-probes/ http://allthingsd.com/20120427/google-discloses-a-pair-of-overseas-probes/#comments Fri, 27 Apr 2012 20:00:42 +0000 John Letzing http://allthingsd.com/?p=200900 Google Inc. formally disclosed a pair of inquiries under way in Argentina and South Korea this week, adding to global scrutiny of the Internet company.

Google said in a quarterly regulatory filing that Argentina’s Competition Commission and South Korea’s Fair Trade Commission have each opened investigations into “certain business practices” at the Mountain View, Calif.-based company.

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]]> http://allthingsd.com/20120427/google-discloses-a-pair-of-overseas-probes/feed/ 0 FTC Hires High-Profile Lawyer to Help Lead Google Probe http://allthingsd.com/20120427/ftc-hires-high-profile-lawyer-to-help-lead-google-probe/ http://allthingsd.com/20120427/ftc-hires-high-profile-lawyer-to-help-lead-google-probe/#comments Fri, 27 Apr 2012 09:00:57 +0000 Brent Kendall and Joe Palazzolo http://allthingsd.com/?p=200630 The Federal Trade Commission announced Thursday it has enlisted a seasoned litigator to help lead its antitrust investigation into whether Google Inc. has abused its dominance in Web-search advertising, a move that could provide a big boost to the agency’s legal team if it ultimately decides to bring a case against the search giant.

The commission hasn’t decided whether to file a lawsuit against the Internet giant, but the hiring of Beth Wilkinson — a partner at Paul, Weiss, Rifkind, Wharton & Garrison LLP and former Justice Department prosecutor — sends a signal that the commission is prepared to take its case to court, if necessary. A Google spokesman declined to comment.

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]]> http://allthingsd.com/20120427/ftc-hires-high-profile-lawyer-to-help-lead-google-probe/feed/ 0 FCC Proposes $25,000 Fine on Google http://allthingsd.com/20120415/fcc-proposes-25000-fine-on-google/ http://allthingsd.com/20120415/fcc-proposes-25000-fine-on-google/#comments Sun, 15 Apr 2012 08:18:27 +0000 Amy Schatz http://allthingsd.com/?p=196449 The Federal Communications Commission proposed a $25,000 fine on Google Inc., accusing the search giant of deliberately obstructing an investigation into whether the company violated federal rules when its street-mapping service collected and stored data from unencrypted Wi-Fi networks in 2010.

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]]> http://allthingsd.com/20120415/fcc-proposes-25000-fine-on-google/feed/ 0 Best Buy Probes CEO Relationship http://allthingsd.com/20120412/best-buy-probes-ceo-relationship/ http://allthingsd.com/20120412/best-buy-probes-ceo-relationship/#comments Thu, 12 Apr 2012 23:20:27 +0000 Miguel Bustillo, Joann S. Lublin and Ann Zimmerman http://allthingsd.com/?p=196163 Best Buy Co.’s investigation into the personal conduct of former Chief Executive Brian Dunn is exploring whether he misused company assets in the course of an alleged relationship with a female subordinate, people familiar with the matter said.

The electronics retailer declined to discuss any details of its continuing investigation Thursday, saying it planned a full airing of its findings once the inquiry by the board’s audit committee is complete.

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]]> http://allthingsd.com/20120412/best-buy-probes-ceo-relationship/feed/ 0 SEC Probes Groupon http://allthingsd.com/20120403/sec-probes-groupon/ http://allthingsd.com/20120403/sec-probes-groupon/#comments Tue, 03 Apr 2012 11:20:41 +0000 Shayndi Raice and Jean Eaglesham http://allthingsd.com/?p=192486 The Securities and Exchange Commission is examining Groupon Inc.’s revision of its first set of financial results as a public company, according to a person familiar with the situation.

The regulator’s probe into the popular online-coupon company is at a preliminary stage and the SEC hasn’t yet decided whether to launch a formal investigation into the matter, the person said.

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]]> http://allthingsd.com/20120403/sec-probes-groupon/feed/ 0 Google in New Privacy Probes http://allthingsd.com/20120316/google-in-new-privacy-probes/ http://allthingsd.com/20120316/google-in-new-privacy-probes/#comments Fri, 16 Mar 2012 10:30:32 +0000 Julia Angwin http://allthingsd.com/?p=187029 Regulators in the U.S. and European Union are investigating Google Inc. for bypassing the privacy settings of millions of users of Apple Inc.’s Safari Web browser, according to people familiar with the investigations. Google stopped the practice last month after being contacted by The Wall Street Journal.

The investigations — which span U.S. federal and state agencies, as well as a pan-European effort led by France — could embroil Google in years of legal battles and result in hefty fines for privacy violations. The Journal in February reported that Google was using special computer code to install tiny tracking files, or “cookies,” on some people’s computers, iPhones and iPads, even if the devices were set to block this kind of tracking.

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]]> http://allthingsd.com/20120316/google-in-new-privacy-probes/feed/ 0 EC Confirms Inquiry Into Possible Telecom Collusion http://allthingsd.com/20120314/ec-confirms-inquiry-into-possible-telecom-collusion/ http://allthingsd.com/20120314/ec-confirms-inquiry-into-possible-telecom-collusion/#comments Wed, 14 Mar 2012 16:57:09 +0000 John Paczkowski http://allthingsd.com/?p=186260 The European Commission is questioning five of Europe’s largest telecommunications companies over concerns that a series of meetings held among them may have constituted collusion.

Targeted in the query are the so-called E5 — Deutsche Telekom, France Telecom, Telecom Italia, Telefónica, and Vodafone — whose CEOs met occasionally, beginning in 2010, ostensibly to discuss major industry issues.

Topics of discussion reportedly ran the gamut of innocent topics — from mobile payment platforms to the creation of a common app platform. But evidently the EC is concerned that more nefarious things may have been discussed, and if that was the case, whether the meetings constituted collusion.

The European Commission confirmed the inquiry, but stressed that at this stage no formal investigation has been launched.

“The requests for information relate to the manner in which standardization for future services in the mobile-communications area is taking place,” a spokesman for EC Competition Chief Joaquin Almunia explained. “These fact-finding steps do not mean that we have competition concerns at this stage, nor do they prejudge the follow-up.”

So this may not necessarily lead to an official investigation. That said, such requests do often signal that a more detailed probe is in the offing.

]]> http://allthingsd.com/20120314/ec-confirms-inquiry-into-possible-telecom-collusion/feed/ 0 FBI's "Sabu" Hacker Was a Model Informant http://allthingsd.com/20120309/fbis-sabu-hacker-was-a-model-informant/ http://allthingsd.com/20120309/fbis-sabu-hacker-was-a-model-informant/#comments Fri, 09 Mar 2012 08:06:16 +0000 Chad Bray http://allthingsd.com/?p=182248 As soon as he was caught, an influential computer hacker agreed to become a government informant and “literally worked around the clock” to help federal agents nab an elusive collective of alleged cyber criminals who have launched online attacks against companies, governments and individuals.

The new details, revealed in court documents made public on Thursday, show how quickly investigators were able to turn 28-year-old Hector Xavier Monsegur against his fellow alleged hackers.

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]]> http://allthingsd.com/20120309/fbis-sabu-hacker-was-a-model-informant/feed/ 0 Microsoft: Google Bypasses Privacy Settings in Internet Explorer, Too http://allthingsd.com/20120220/microsoft-google-bypasses-privacy-settings-in-internet-explorer-too/ http://allthingsd.com/20120220/microsoft-google-bypasses-privacy-settings-in-internet-explorer-too/#comments Tue, 21 Feb 2012 03:43:34 +0000 Lauren Goode http://allthingsd.com/?p=176241 Last Friday, a Wall Street Journal report revealed that Google and some advertising companies had been circumventing privacy settings in order to follow users browsing through the Safari browsing on the iPhone and on the Web. Now, Microsoft has said that Google is working around the privacy settings on its browser, Internet Explorer, as well.

In a blog post written by Dean Hachamovitch, Microsoft’s corporate vice president for Internet Explorer, the software giant alleges that Google is using similar methods — though the actual bypass mechanism is different — to get around default privacy protections in Internet Explorer and track IE users with cookies.

By default, Microsoft says, Internet Explorer blocks third-party cookies, unless the site presents a “P3P Compact Policy Statement” indicating how the site will use the cookie and that ultimately the site won’t track the users.

“Technically, Google utilizes a nuance in the P3P specification that has the effect of bypassing user preferences about cookies … By sending this text, Google bypasses the cookie protection and enables its third-party cookies to be allowed rather than blocked,” the post reads.

Microsoft said it has contacted Google and asked them to commit to Microsoft’s standard privacy settings for browser users.

In the post, Microsoft also offered a Tracking Protection List that Internet Explorer 9 users can add as a protection, “in the event that Google continues this practice.”

Google has responded by saying that Microsoft has omitted important information in its blog post.

“Microsoft uses a ‘self-declaration’ protocol (P3P) dating from 2002 under which Microsoft asks websites to represent their privacy practices in machine-readable form,” Google’s statement reads. “It is well known — including by Microsoft — that it is impractical to comply with Microsoft’s request while providing modern web functionality. We have been open about our approach, as have many other websites.”

Google went on to point out that in 2010, a research report from Carnegie Mellon University found that more than 11,000 of 33,139 Web sites were not issuing valid P3P policies as requested by Microsoft.

“Today the Microsoft policy is widely non-operational,” Google said.

The Wall Street Journal reported Google’s bypass of Safari’s privacy settings late last week, and after being contacted by the Journal, Google disabled the code that had allowed it to track Safari users. Three U.S. lawmakers have since called on the FTC to investigate the search giant over the privacy gaffe.

(Photo courtesy of Flickr/Si1very)

]]> http://allthingsd.com/20120220/microsoft-google-bypasses-privacy-settings-in-internet-explorer-too/feed/ 14 Chinese Hackers Suspected In Long-Term Nortel Breach http://allthingsd.com/20120214/chinese-hackers-suspected-in-long-term-nortel-breach/ http://allthingsd.com/20120214/chinese-hackers-suspected-in-long-term-nortel-breach/#comments Tue, 14 Feb 2012 08:45:22 +0000 Siobhan Gorman http://allthingsd.com/?p=174274 For nearly a decade, hackers enjoyed widespread access to the corporate computer network of Nortel Networks Ltd., a once-giant telecommunications firm now fallen on hard times.

Using seven passwords stolen from top Nortel executives, including the chief executive, the hackers — who appeared to be working in China — penetrated Nortel’s computers at least as far back as 2000 and over the years downloaded technical papers, research-and-development reports, business plans, employee emails and other documents, according to Brian Shields, a former 19-year Nortel veteran who led an internal investigation.

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]]> http://allthingsd.com/20120214/chinese-hackers-suspected-in-long-term-nortel-breach/feed/ 0 EU Opens Antitrust Probe Against Samsung Over Patents http://allthingsd.com/20120131/eu-opens-antitrust-probe-against-samsung-over-patents/ http://allthingsd.com/20120131/eu-opens-antitrust-probe-against-samsung-over-patents/#comments Tue, 31 Jan 2012 14:00:01 +0000 Frances Robinson http://allthingsd.com/?p=169229 The European Commission has opened a formal investigation into technology giant Samsung Electronics to see whether it is using specially protected patents, known as “standards-essential,” to distort the market for mobile devices such as phones and tablets in Europe.

The case hinges on standards-essential patents, patents which cover an area that is crucial to compliance with an industry standard, such as 3G or Wi-Fi.

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]]> http://allthingsd.com/20120131/eu-opens-antitrust-probe-against-samsung-over-patents/feed/ 0 South Korea Says Google Impeded Antitrust Probe http://allthingsd.com/20120109/s-korea-says-google-impeded-antitrust-probe/ http://allthingsd.com/20120109/s-korea-says-google-impeded-antitrust-probe/#comments Mon, 09 Jan 2012 19:14:20 +0000 John Paczkowski http://allthingsd.com/?p=161687 Google’s relationship with the South Korean government was never all that great to begin with, but now it seems to have slipped into a real downward spiral. The Korean Fair Trade Commission (KFTC) has accused the company of meddling with its Android-related antitrust investigation.

The Hankook Ilbo reports that the Korean Fair Trade Commission believes Google interefered with a KFTC raid of its South Korean headquarters by deleting pertinent documents instructing its employees to work from home. The agency had been looking for materials supporting complaints that Google is allegedly limiting access to local search engines on Android smartphones.

If the agency determines that Google did indeed obstruct its investigation, it could slap the company with a fine of up to 200 million won. Which, aside from the negative PR that would accompany it, isn’t nearly as bad as it sounds — about $172,000 at current exchange rates.

Reached for comment, Google said that it is cooperating with the KFTC, but flat-out denied accusations that it deleted documents or instructed employees to telecommute to impede the investigation. The company also said it has not been told that the Commission is considering fines.

(Image courtesy of Flickr/toughkidcst)

]]> http://allthingsd.com/20120109/s-korea-says-google-impeded-antitrust-probe/feed/ 0 U.S. Probe Ties Chinese Cyberspying to Military http://allthingsd.com/20111212/u-s-probe-ties-chinese-cyberspying-to-military/ http://allthingsd.com/20111212/u-s-probe-ties-chinese-cyberspying-to-military/#comments Mon, 12 Dec 2011 23:27:52 +0000 Siobhan Gorman http://allthingsd.com/?p=153157 U.S. intelligence agencies have pinpointed many of the Chinese groups responsible for cyberspying in the U.S., and most are sponsored by the Chinese military, according to people who have been briefed on a U.S. intelligence investigation.

Armed with this information, the U.S. has begun to lay the groundwork to confront China more directly about its expansive cyberspying campaign. Two weeks ago, U.S. officials met with Chinese counterparts and warned China about the diplomatic consequences of economic spying, according to a former official familiar with the meeting.

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]]> http://allthingsd.com/20111212/u-s-probe-ties-chinese-cyberspying-to-military/feed/ 0 Justice Department Confirms E-Book Probe http://allthingsd.com/20111207/justice-department-confirms-e-book-probe/ http://allthingsd.com/20111207/justice-department-confirms-e-book-probe/#comments Wed, 07 Dec 2011 19:01:39 +0000 Thomas Catan http://allthingsd.com/?p=151529 The U.S. Justice Department confirmed Wednesday that it is conducting an antitrust investigation into the pricing of electronic books, the latest antitrust watchdog to probe whether there was improper collusion by publishers and Apple Inc. to prevent discounting.

At a congressional hearing, Sharis Pozen, the Justice Department’s acting antitrust chief, said: “We are also investigating the electronic book industry, along with the European Commission and the states attorneys general.”

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]]> http://allthingsd.com/20111207/justice-department-confirms-e-book-probe/feed/ 0 U.S. Probes Oracle Dealings http://allthingsd.com/20110831/u-s-probes-oracle-dealings/ http://allthingsd.com/20110831/u-s-probes-oracle-dealings/#comments Wed, 31 Aug 2011 09:30:27 +0000 Joseph Palazzolo and Samuel Rubenfeld http://allthingsd.com/?p=115548 U.S. authorities are investigating whether Oracle Corp., one of the world’s largest software companies by sales, violated federal antibribery laws in its dealings abroad, according to people familiar with the matter.

Agents in the Federal Bureau of Investigation’s Washington field office and fraud prosecutors in the Justice Department’s Criminal Division are handling a criminal investigation, which has been under way for at least a year, according to people familiar with the matter. Attorneys at the Securities and Exchange Commission are also investigating for possible civil violations, these people said.

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