Saturday, October 30, 2010

Gubernatorial candidate with "resume marked by fraud, gross incompetence, wasteful spending and gross disregard for anyone's interests but her own."

Meg Whitman, curse of California, "Whitman left a legacy of bitterness among untold numbers of jilted employees, shareholders and eBay clients, while enriching herself and a handful of fellow executives and investment bankers.
Her worst decision at eBay -- to buy internet phone service Skype for over $4 billion in 2005 -- bled billions in eBay's value. It was a huge waste of money whose consequences were passed on to employees and shareholders. The effects are still being felt by the company today, over five years after Whitman's disastrous decision...
See, as it turned out, Whitman didn't just overpay for Skype--she overpaid, and didn't even own Skype.
That's right, when Whitman signed on the dotted line and plunked down $4.1 billions, she did not buy the technology that made Skype work, but instead leased it from Skype's original creators--who were under no obligation to continue the lease.
But by October 7, 2007, investors were already getting fed up with Whitman's helmsmanship. This was the high-point of the last bull market bubble, and yet eBay's stock on this day was slightly lower than where it was in September 2005, when the Skype deal was first announced. Meanwhile, eBay's biggest competitor,, saw its stock price soar 122 percent over the same two-year period."

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