conflicts-of-interest

Was TechCrunch50 rigged?

Owen Thomas · 09/11/08 04:00PM

The anointing of Yammer as the winner of TechCrunch50 has raised questions about how the startup-launch conference operates. Michael Arrington, the founder of TechCrunch, has made much of the fact that he and fellow event organizer Jason Calacanis don't charge startups to present at the show, as established rival Demo does. But people who attended the show are saying behind his back that the contest was rigged in favor of a pet startup of Arrington's with ties to one of the event's sponsors.Yammer is a business-friendly copy of Twitter. It's an offshoot of Geni, a Web-based genealogy site started by former PayPal COO David Sacks, which raised $100 million in venture capital last year. TechCrunch50's prize panel, composed of Arrington and a few TechCrunch insiders (shown here, in a spy photo taken at the event), passed over more promising startups like FitBit, the maker of a wellness-monitoring gadget. Quality aside, a sense of fairness might have led Arrington to give Yammer the skip: Neither Sacks nor Geni needed the $50,000 prize. Arrington's crush on Geni has been obvious since before its launch. (Most recently, he claimed Geni had close to a million visitors a month in August; according to a link to Compete.com Arrington himself included in his writeup, it's actually 400,000, a fraction of the audience enjoyed by established genealogy sites like Ancestry.com and MyHeritage.) The problem with events like this is no one is unconflicted. But Sacks is in particularly deep: His former boss at PayPal, Peter Thiel, now runs VC firm Founders Fund, one of TechCrunch50's sponsors. Arrington has long been rumored to favor startups backed by the VCs who sponsor his event. He brags that he doesn't charge startups directly to appear on stage. But he seems to like to have them in his pocket, one way or another.

Carlos Slim's Shady Money Flows Into Times

Ryan Tate · 09/11/08 09:46AM

Mexican billionaire Carlos Slim's $127 million investment in the New York Times Company made headlines this morning, but left unremarked upon, including by the Times itself, are the murkier aspects of how Slim made his fortune. Yes, Slim acquired control of telephone monopoly Telmex in 1990 when it privatized in part by smartly partnering with Southwestern Bell and France Telecom. It's also true he has strongly denied there was anything untoward about the $1.7 billion purchase price, even though the company just 14 years later was valued at $37 billion. But Slim's financial support for the ruling PRI party, including a $25 million donation at a notorious 1993 fundraising dinner, was at the very least leveraged in an unseemly manner elsewhere. Slim went on to use his "influence over the government" to fight off the entry of competing phone companies into the impoverished Mexican market — that according to the Times itself in 2006. And what of the billionaire as a "decent philanthropist"?

CBS News Censors McCain Ad

Ryan Tate · 09/10/08 03:46PM

CBS News may be home to the once-groundbreaking newsmagazine 60 Minutes and even the instigator of an evening-news segment called "free speech," but it'll be damned if it's going to let John McCain use footage of Katie Couric to smear Barack Obama as a sexist. CBS said the ad took Couric's comments out of context, which it apparently did, implying a swipe at Obama that was never taken. But instead of pursuing a lengthy court case that would have to contend with extensive case law protecting political ads, CBS is borrowing a tactic from the Church of Scientology and alleging a copyright infringement, at least according to YouTube's statement on the matter. That got the video removed nice and quick-like, though it still exists on the McCain campaign website. Surely CBS news executives could have taken a a more elitist road than low-grade YouTube censorship. [Politico]

VC reporter finally joins the team

Paul Boutin · 09/08/08 04:20PM

No one's surprised that GigaOm founder-and-whatever-else Om Malik has joined True Ventures as a partner. Or that he buried the news near the bottom of a lengthy blog post last week. Or that it took days for reporters to discover the blog post, with its classically obscure Malikian headline, "Evolving My Work Life." The New York Times felt obligated to quote a journalism ethics prof on the potential conflict of Om being both a Valley VC and a reporter on Valley VCs. But let's be honest about the Valley's take: No one cares. Like fellow reporters-turned-moneymen Michael Moritz and Stewart Alsop, Malik will finally, finally be taken seriously by the people he's been following for years. (Photo by Brian Solis)

TechCrunch owner's startup slips into TechCrunch50 lineup

Nicholas Carlson · 09/08/08 12:20PM

The TechCrunch50 is out and again the list reads like a self-parody. Shryk? Swype? There is one interesting startup on the list, however: Fotonauts. Not because we know or care to know what Fotonauts does. We're just intrigued by Fotonauts president Keith Teare's habit of saying he owns 10 percent of TechCrunch. Isn't that a refreshing bit of honesty about how a list like the TechCrunch50 gets put together?Arrington himself describes Teare as someone "who formerly cofounded Edgeio with me," leaving out Teare's relationship with TechCrunch. As we understand it, Arrington and Teare swapped 10 percent stakes in their companies. Since Edgeio, an online classifieds startup, went under, we suppose that makes Teare the better dealmaker of the two. He's also more brutally honest. On his LinkedIn profile, Teare says of himself: "I am Mike Arrington's business partner in TechCrunch. I'm the one who advised him not to do it. :-)"

Google food manager charged with double-dealing

Owen Thomas · 08/27/08 04:00PM

The brouhaha over Google's once-legendary, now troubled free-meals perk has bubbled up more charges of wrongdoing in the search engine's kitchens. An anonymous poster has taken to Craigslist to air charges against Google's former global food manager, John Dickman. (The post refers to him as "Dick," but it's obviously Dickman being discussed.) The Craigslist poster claims Dickman, left, who is married to Lisa McEuen, right, an executive at the parent company of food-service operator Bon Appétit, with leaking inside information which helped Bon Appétit win a contract to run Google's in-house meal service.The poster claims Dickman then arranged to get a kickback from Bon Appétit. Google, he goes on to write, investigated Dickman and Bon Appétit, going as far as testing fruits and vegetables, presumably to see if they met Google's high standards for organic and sustainable ingredients. The implication there: Bon Appétit had been feeding Googlers slop dressed up as fancy fare. The end of the Craigslist poster's story: Dickman was brought before Google's board and fired. All juicy gossip — but there's one thing that doesn't make sense about this whole tale. Dickman is now working at Apple, a company with close ties to Google. Google CEO Eric Schmidt is on Apple's board of directors. Apple directors Bill Campbell and Al Gore are important advisors to Schmidt. If Dickman left Google in a cloud, how could he possibly land a job at Apple? Either the poster's allegations aren't true — or something darker is going on here. One possible explanation: Google's leaders might have arranged for Dickman to get a job with their friends at Apple in exchange for buying his silence on other matters. Here are excerpts from the original post on Craigslist:

Bush Minions Welcomed Into Media

Ryan Tate · 08/20/08 12:45AM

The supposedly liberal news media hired talking heads like George Stephanopoulos and James Carville from Bill Clinton's presidential administration, but they were even more eager to Hoover up "talent" from the conservative Bush White House two elections later. In the image at left, our Photoshop wizard Steve Dressler shows which top Bush staffers have landed job as commentators, and with whom. Hint: It's not just Fox News and the Wall Street Journal editorial page hiring these Republican operatives. Click through to see the full-sized image.

Google cofounder funnels money to wife's startup through Michael J. Fox charity

Owen Thomas · 07/16/08 01:20PM

Google employees must avoid even the appearance of a conflict of interest, according to the company's code of conduct. But Sergey Brin is exempt from such bureaucratic trifles. The cofounder skirted ethical lines when he loaned money to 23andMe, a genetic-testing startup cofounded by his wife, Anne Wojcicki, and later had Google repay that loan in the course of investing in that company. The Google board's audit committee and CEO Eric Schmidt blithely signed off on the deal, however. Now, Brin has found a new way to route money to 23andMe, this time through a charity — thereby boosting, at least notionally, the value of Google's investment and his wife's net worth. Brin can claim it's all for a good cause, but the deal stinks to high heaven.

AP To Karl Rove: "Keep Up The Fight"

Ryan Tate · 07/14/08 09:12PM

The Associated Press' Washington bueau chief, Ron Fournier, has been pissing various people off with his "accountability journalism" since he was installed in May. His bitter former boss at AP trashed his credentials to Politico, and influential website Talking Points Memo wondered if he wasn't responsible for the AP's "atrocious campaign coverage this year." Fournier has said his new approach, which involves taking more pointed stands within news articles, is driven by an in-depth examination of the facts, while critics say it is simply biased, advocacy journalism dressed up in new clothes. Fournier has had the backing of top AP brass in New York, but that may soon change, given the following recap of a 2004 email from Fournier to then-White House senior advisor Karl Rove, published this evening on TPM:

Times Fawns Over Own Insider's Book — Again

Ryan Tate · 07/11/08 12:40AM

Times editors can't stop lavishing praise on books linked to their corporate overlords — and one corporate overlord can't seem to keep her family members from enjoying the fruits of this self-dealing. Times board member Lynn Dolnick yet again has an immediate family member whose book is featured in her newspaper, and yet again there is no disclosure of the connection to the board or to publisher Arthur Sulzberger Jr., who is Dolnick's cousin. And this time, the newspaper really went to town. A book by Dolnick's husband Edward about Dutch art forger Han van Meegeren got an early review ("engaging"), an "editor's choice" recommendation, a special plug on page A4, and a friendly write up on the Paper Cuts blog ("delightful book"). And the Times is not likely to be making any apologies for the situation, judging from its handling of Lynn Dolnick's last nepotism controversy.

Google's conflicted board

Owen Thomas · 07/08/08 10:40AM

CEO Eric Schmidt's Apple board seat is only the beginning of Google's high-level conflicts of interests. Once Google's directors get done recusing themselves, there might not be anyone left in the boardroom. [Portfolio]

CNET Writer's Cozy Sourcing

Ryan Tate · 06/26/08 11:21PM

CNET News.com writer Caroline McCarthy published a nice scoop today on how social networking site I'm In Like With You raised $1.5 million from venture funding firm Spark Capital. Silicon Alley Insider has been chasing the story for weeks! How did McCarthy pull the exclusive out from under their nose? Who's to say! But, um, it's probably worth noting that McCarthy is dating David Karp, founder of blog network Tumblr and an intimate, bed-cuddling, entire-body-carrying friend of I'm In Like With You founder Charles Forman. Karp's company also shares Spark Capital as a venture funding backer. So, basically, McCarthy had sources close to her boyfriend to draw on. (Pictured, the happy threesome of Forman, Karp and McCarthy, as photographed by Richard Blakeley.) Should McCarthy's CNET blog post have carried a disclaimer? She doesn't think so:

Eric Schmidt admits he was kicked out of Apple boardroom over iPhone-Android rivalry

Owen Thomas · 06/12/08 03:20PM

Keep your friends close, and your enemies on your board of directors. That seems to be the rationale for Google CEO Eric Schmidt's continued presence in Apple's boardroom. Despite a promised rain of would-be iPhone killers powered by Google's Android operating system coming later this year, Schmidt said he's only had to excuse himself from board meetings "once or twice." (Photo by Steve Jurvetson)

Obama Declares Obama The Winner

Ryan Tate · 06/03/08 09:31PM

Sure, the Times has joined ABC News, NBC News, CNN and AP in declaring Barack Obama the presumptive Democratic presidential nominee based on his delegate count after a victory in Montana and sufficiently strong showing in South Dakota. But after Obama rival Hillary Clinton refused to do the same and finally, mercifully concede during a speech tonight, no one really knew what Obama would say. Well, he stuck to the script: "I will be the Democratic nominee," followed by a polite nod to Clinton and her campaign, then a pelting of John McCain, starting with this: "I honor [his military] service, and I respect his many accomplishments, even if he chooses to deny mine." Video excerpt of the speech after the jump.

Facebook's Julia Lam and Slide's Doug Sherrets like to SuperPoke

Nicholas Carlson · 06/03/08 10:40AM

While people are busy complaining about Facebook's "Orwellian" redesign, you won't hear a peep from Doug Sherrets, who works in business development at widgetmaker Slide. Why? We hear Sherrets and Julia Lam, who works in platform product marketing for Facebook, are now — as Facebook profilespeak would have it — "in a relationship." Could that be a conflict of interest? Maybe, but you obviously can't credit all of Slide's success to Sherrets's abilities to sleep with the frenemy. Slide's most popular widget, SuperPoke, is said to be both sticky and fun.

Post Women Very Powerful, Says Post

Ryan Tate · 06/02/08 02:58AM

As if its listicle of the "50 Most Powerful Women In NYC" were not journalistically dubious enough, the Post also had to use the list for shameless self promotion, putting two of its own columnists on the list. Granted, some of the non-Post choices were also highly questionable, like the editor-in-chief of Cookie magazine, socialite Ivanka Trump and former hooker Ashley Dupre. But how can you even begin to take the selection of, say, Post columnist Cindy Adams seriously when the first qualification listed for her is "she's got a sandwich named after her?" The Post's self-serving choices are after the jump.

Schmidt: Microsoft-Yahoo would "elminate consumer choice"

Nicholas Carlson · 04/30/08 04:00PM

In this excerpt from Eric Schmidt's interview with CNBC's Maria Bartiromo, the Google CEO explains that a Microsoft-Yahoo merger would "eliminate consumer choice, particularly in electronic mail, instant messaging — things where they would have 80 or 90 percent market share." As an alternative, Google has proposed the idea of serving its ads against Yahoo's search, giving it control over 80 percent of the search advertising market. But that would eliminate advertisers' choice, not consumers'. So it's cool.