Tuesday, September 1, 2009

Sold! eBay jettisons Skype in $2 billion deal | Wireless - CNET News




E-commerce giant eBay announced Tuesday that it is selling its Skype unit to an investor group that includes Marc Andreessen's new venture.


Under the deal, eBay will receive approximately $1.9 billion in cash and a note from the buyer in the principal amount of $125 million, for a total of $2.025 billion. The participants expect the deal to close in the fourth quarter.


 



 


The investor group, which will take a roughly 65 percent stake in Skype, is led by Silver Lake and includes Index Ventures, Andreessen Horowitz, and the Canada Pension Plan Investment Board. The remaining 35 percent of the Internet telephony service will be retained by eBay.


The parties said the deal values Skype, which is likely to see an IPO in the coming months, at $2.75 billion.


The sale of Skype had been expected for some time. Word of Tuesday's impending sale to the private investor group was first reported late Monday in The New York Times.


The Andreessen Horowitz venture capital group was launched in July by Marc Andreessen, the founder of Netscape and co-founder of Opsware, and Ben Horowitz, also co-founder of Opsware.


 


With the sale, eBay acknowledged that things hadn't worked out as planned with Skype, which it acquired for $2.6 billion in 2005 with the plans to offer customers the ability to discuss their transactions in real time. Over the course of the four years since then, eBay found that its acquisition failed to provide what it sought.


"Skype is a strong standalone business, but it does not have synergies with our e-commerce and online payments businesses," eBay President and CEO John Donahoe said in a statement Tuesday. "As a separate company, we believe that Skype will have the focus required to compete effectively in online voice and video communications and accelerate its growth momentum."


Lead investment firm Silver Lake echoed the forward-looking sentiments.


"This transaction benefits...will allow Skype the opportunity to accelerate the growth of its business by harnessing the deep technological and company development expertise that resides within the investor group," Egon Durban, managing director at Silver Lake, said in a statement.


In 2007, eBay said it would take a $900 million so-called impairment writedown against the value of Skype, meaning that eBay had been forced to reassess the value of the Internet telephony company relative to its overall business. By recording a charge, the company essentially announced it had taken a loss on its original investment.


When eBay announced Donahoe as its new CEO in 2008, he indicated that the company would take a year to evaluate the future of its online phone and video-conferencing service.


In April, eBay announced plans to spin off Skype, with an IPO in the first half of next year.


Along the way, reports had surfaced that Skype founders Niklas Zennstrom and Janus Friis were interested in repurchasing the company.


Clarification at 7:44 a.m. PDT: This story miscast the value of the deal. eBay gets approximately $1.9 billion in cash and a note from the buyer in the principal amount of $125 million, for a total of about $2.025 billion. The companies say the deal values Skype at about $2.75 billion.





 


Tuesday, July 14, 2009

Facebook's valuation: The cheat sheet by Caroline McCarthy




124diggsdigg


Seriously, how much is Facebook worth? It's been an enigma in tech gossip for years now, as the social-networking company grows bigger and bigger and yet remains privately held. And some of Facebook's most rapid growth has taken place in the midst of a stormy economic climate that could batter any company's balance sheet. So here's a rundown of what tech blogs, news outlets, investors, and Valley gadflies have said thus far about just how much Facebook is worth.


Are all these numbers accurate? In a word, no. Some of them were rumors (albeit decently strong ones, as we've omitted some of the more ridiculous ones), and others refer to Facebook's preferred-stock valuation, which as we learned during its legal tiff with onetime rival ConnectU, that isn't necessarily anywhere close to the company's paper valuation.


One thing that's interesting: Take a look at the trajectory. Facebook's perceived valuation keeps climbing and climbing and climbing right up to its $240 million investment by Microsoft. Then, once the hype dies down (and the market starts to sputter) it tanks. It's not until, perhaps not coincidentally, the departure of chief financial officer Gideon Yu and the stronger likelihood of a new investment round that Facebook's valuation starts to climb again.


What's next? Digital Sky Technologies' investment in Facebook assumed a preferred-stock valuation of $10 billion, and employee stock trades have started at about a $6.5 billion valuation. It's not yet clear how much more the company's worth will fluctuate before, at long last, founder and CEO Mark Zuckerberg and his team decide to take it public. That is, of course, assuming that actually happens.


 











































































Playing the Facebook valuation game
Everyone's constantly talking about how much Facebook is worth. But how much has that number changed over the past few years? A lot, it turns out. Here's our cheat sheet.


Few thousandFebruary 2004: Backed by a few thousand dollars from its co-founders, Facebook goes live as a small, minimalist social-networking site limited to Harvard undergraduates.

 


$10 millionJune 2004: PayPal co-founder Peter Thiel becomes Facebook's first outside investor. He invests $500,000 into the 4-month-old social network, which has by now taken its home base of Harvard and a scattering of other elite colleges by storm. Later that year, there are shaky rumors that Friendster--still a major player in U.S. social networking at the time--offered $10 million for Facebook and was turned down.

 


$100 millionApril 2005: Facebook raises a $12.7 million Series A round of funding from Accel Partners. Rumors peg its valuation at about $100 million.

 


$750 millionMarch 2006: BusinessWeek reports that Facebook turned down a $750 million acquisition offer and was shopping itself to potential buyers at closer to $2 billion.

 


$525 millionApril 2006: Facebook raises its Series B round of funding to the tune of $25 million. The round is led by Greylock Partners, with contributions from Meritech Capital Partners, and prior investors Accel Partners and Peter Thiel. The company's pre-money valuation is reported to be $525 million.

 


$1 billionSeptember 2006: Rumors--which are later confirmed--start to swirl that Yahoo has offered to acquire Facebook for as much as $1 billion.

 


$8 billionDecember 2006: Early Facebook investor Peter Thiel, who fueled the small social network with $500,000 in June 2004, tells Bloomberg that he believes the company is worth as much as $8 billion but says it is not for sale.

 


$15 billionOctober 2007: Microsoft invests $240 million in Facebook at a $15 billion valuation. Although it's not really made clear at the time, the company later clarifies that this investment was in preferred stock and that therefore $15 billion is not the company's actual valuation.

 


$3.75 billionJune 2008: Previously redacted court documents from ConnectU v. Facebook, the trial in which the creators of a onetime rival social network at Harvard sued Facebook CEO Mark Zuckerberg--claiming he stole their code and business plan--reveal that at this time, Facebook valued itself at $3.75 billion.

 


$4 billionAugust 2008: Reports surface that Facebook, with early employees growing restless about stock options that they thought they could've cashed out by now, is about to launch a program to permit the sale of some vested shares. The internal valuation is said to be $4 billion. By the end of October, rumors start to spread that chief financial officer Gideon Yu was spotted in Dubai, supposedly to drum up interest from new overseas investors.

 


$3 billionMarch 2009: Months later, the Silicon Valley rumor mill still won't stop talking about employees' private sales of Facebook stock--and apparently, the numbers aren't too pretty. The figures tossed around indicate that the stock is trading at a valuation well south of $3 billion. Later in March, Facebook CFO Gideon Yu leaves the company. Persistent rumors hint that he was unable to secure new funding for the company.

 


$2 billionApril 2009: TechCrunch reports that Facebook received a term sheet from potential investors with a valuation of $2 billion and turned it down.

 


$4 billionApril 2009: On the same day, VentureBeat reports that Facebook was on the verge of accepting new funding at a $4 billion valuation, but that Zuckerberg said no.

 


$8 billionMay 2009: The latest rumor is that Facebook turned down yet another term sheet--this one for a $200 million investment at an $8 billion valuation.

 


$10 billionMay 2009: Later in the month, Facebook finally gets that long-rumored cash. The company receives an investment of $200 million from the Russian firm Digital Sky Technologies at a $10 billion preferred-stock valuation. Also included: a plan to buy back a limited amount of vested employee stock.

 


$6.5 billionJuly 2009: Digital Sky Technologies begins its buyback of up to $100 million in Facebook employee shares. Each share of common stock is selling for $14.77, which assumes a valuation of $6.5 billion for the company.

 


Source: CNET News research




 


Tuesday, June 16, 2009

Interview with Carina Hollekim - by Red Bull


Red Bull Reporter - Interview with Karina Hollekim


Karina Hollekim is one of the most inspirational, remarkable and self-motivated people one could be pleased to meet. Most people have childhood dreams, but not many are ever realised – especially if the dream is to fly! Will Gilgrass meets her.


The 33-year old Norwegian achieved this dream, as she spent six-years as a professional BASE Jumper. However, in August, 2006, during a routine skydive in front of 5,000 onlookers around Lake Geneva, Switzerland, disaster struck. A parachute malfunction sent her crashing at 100-km/hour to the ground, shattering both her legs and leaving her life in the balance.


Miraculously she survived, and despite picking up 25-fractures and being told she would never walk again – just a year on she was rock climbing. I was sent to Soho by Red Bull to meet this incredible woman before the premier of her biographical film 20 Seconds of Joy.


Will Gilgrass: You started off skiing from a very young age, what was the progression into BASE Jumping?


Karina Hollekim: I began when I was 4-years old and then I got into free riding, and big mountain skiing at quite a young age, getting sponsorship at 16. I always had that dream about flying. I was fascinated by the birds from when I was a little girl, and I actually remember one time when I was at school my teacher asked me to tell her about my dreams. So I said I wanted to fly… She told me that it was a nice dream, and I had to be more realistic in life because people can’t fly. But little does she know, because I kept that dream.


 


WG: What did your friends and family think when you got into BASE Jumping?


KH: My Dad wasn’t super-psyched about it obviously! I had been injured quite a lot during my skiing career – breaking almost every bone in my body. But, he accepted my choices and has been supporting me, asking and telling me to be safe.


 


WG: BASE Jumping must have taken you to some amazing places, which ones stand out?


KH: BASE Jumping takes you to some really magnificent, really remote amazing places; but what is cool about is that there are so many levels of BASE Jumping. You can go to a huge city like New York and be captivated by the buildings and structures, and you can jump off construction projects to hotels or anything in Downtown New York – which is pretty fascinating; and challenging because of the winds. But for sure I’m a nature girl, and I love to hike in the mountains and to climb. Sometimes the jumps that you remember the most are the ones you have been fighting the most to achieve. Maybe you have been rock-climbing for 12 hours straight. Then when you finally make it to the top you sleep only to be woken up by the wind, and it is too windy so you can’t jump and have to repel back down, and the day after you try and do it all again. Then finally you get to jump.


 


WG: What gives you the biggest thrill? Is it the preparation because you have said about the challenges of reaching the top of mountains, and I read a story about you illegally getting ready for a jump in a hotel toilet in Las Vegas; or is it the few seconds in the air itself; or perhaps the feeling of accomplishment?


KH: It is the whole package. Some jumps like the illegal ones are ‘Mission Impossible’, you feel like you are on a James Bond mission, and you have to sneak around. It is all the excitement before hand, making the jump, and the payback afterwards from succeeding. But again it is also about nature, if you walk or climb it is about the visuals and the scenery around you. Some of the most amazing sceneries I have been around are in Africa, in Mali. In the glaciers of Alaska and even travelling in my own country, it was only when I started BASE Jumping that I began to explore and see Norway because you seek out all those hidden valleys which you wouldn’t go to if wasn’t for jumping.


 


WG: What keeps BASE Jumpers going? Is it the challenge to push the boundaries?


KH: I think yer, for sure. I need a challenge so that I feel like I have actually accomplished something, and I think all BASE Jumpers are the same. I seek out the situations that make me scared, that force me to feel. Because in everyday life we are protecting ourselves from all sorts of emotions that we can’t control; but in BASE Jumping you can be forced into an emotional rollercoaster. You go from extreme happiness to extreme fear in seconds – it is breathtaking and captivating.


 


WG: Do you think it is important to almost think there are no limits?


KH: No, there are limits for sure, and it is very important to know where they are, where your limits are, because my limits are different from yours. I need to figure out where my limits are, because if I overstep them I will be dead – you don’t joke around with that.


 


WG: If you don’t mind me asking about your accident, how much of the event do you remember?


KH: I remember pretty much everything, honestly. It was a World Cup in paragliding and I was invited there to do a show, and fly in my wing suit. It was actually out of a plane, so it was like another day in the office. I wasn’t scared about it, or worried because it was an easy thing. I remember sitting in the plane and looking down at Switzerland and it was beautiful. I thought that I was a lucky girl, this was my work, this was my profession – how could it get any better than this? I was with good friends, I was laughing, and I was having a good time. I jumped out of the plane. Just as I was about to open my parachute I heard the roars and clapping from the thousands of spectators that were below us – it was perfect. I pulled the parachute and realised immediately that something was wrong. Then 15-seconds later my life had changed forever. What I had was something called a tension knot, it isn’t an actual knot but a build up of tension, and as long as I am hanging below it can’t be undone. I spun into the ground at 100-km/hour. I fractured everything I have from below my waist down. I had 21 fractures on my right side, and they were all open so I had more of my legs outside than I had inside. But it saved my back and saved my head, so I was still alive. I remember thinking that I had messed up, and I have had some friends who have died in the same way. When I hit the ground I rolled over and saw my legs next to me, and at first I wasn’t sure if I was still alive or dead – because you don’t know what it feels like to be dead. I felt the intense pain, but it became a positive thing because I thought that if I could feel this pain it meant that I was alive.


 


WG: Doing something like BASE Jumping you must have appreciated the dangers that came with it; did it ever cross your mind something like this would happen to you?


KH: Yer. As a BASE Jumper you have to realise the consequences and you have to deal with it. I decided that BASE Jumping was what I wanted to do. But before I was very black and white about it, I knew that if I had an accident I would either survive and be fine, or be dead, but suddenly I was stuck in a wheelchair for an indefinite amount of time, and I was the one who had to deal with the consequences. It was much harder and much tougher than I had ever anticipated. I didn’t regret anything, of course it was too bad it happened, but I had no one to blame.


 


WG: So began your amazing recovery – what kind of stuff did you do?


KH: The first thing I did after spending 4-months in the hospital was eating! I had been in bed and lost all my muscles. I weighed 47kg – about 20kg less than what I weigh today – I was just skin and bone. I couldn’t even sit up in a wheelchair for an entire meal as I super weak. I had been an athlete for a very long time and I used my body for everything that I did. I was frustrated and sad and couldn’t use my body because I was linked to a wheelchair and didn’t know if I would ever get out of there. I didn’t know what to do and I couldn’t let off any steam. My PT at the rehab centre came to me one day and threw a pair of boxing gloves in my face, and I sparred with him. It was such a great feeling because I could use my hands. I used so much energy in that session that I was sick for the next two days – but it was definitely worth it.


 


WG: Do you understand the concepts of fear and defeat.


KH: Sure I do! What do you mean?


 


WG: Doing BASE Jumping for a start is remarkable. But then having the determination to fight on from the position you were in…


KH: Why I started doing all the things I did after the injury was because I missed taking part and sharing with my friends. It wasn’t just about the adrenalin of BASE Jumping or anything like that; it was about being with my friends instead of only sitting at the bottom with a cup of tea waiting for them. That was the only way that I could participate. I want to get back to skiing now because that is what I have been doing all my life. And I think for a girl who had been told that she was never going to be able to walk again, to be able to ski again is probably as good as it gets.


 


WG: Now you have been giving talks. What are the main aims of them and how have they been received?


KH: In a way I am just trying to tell my story, and if someone can get something out of it then I feel like it is worth it for me. My story is pretty universal, even though they might not want to jump off a 1000-metre cliff; we all have setbacks in life. If it’s the loss of someone close or disease we need to find the strength to get back on our feet. If my experiences and the way I have been dealing with it, can be an example for others to deal in certain situations then it feels rewarding for me. I try to kind of focus on the thought that people have to ‘dare to dream’ because even if your dream is completely unrealistic and seems a little far off, I still believe that you can do it and you just need to believe in yourself.


 


WG: So you are looking to start skiing again in the next 12-months, what do you hope to do beyond that?


KH: I want to get back to skiing, and the exploration part. Hopefully I will work with some of the film companies that I have already worked with and make expeditions more scenic than they have been; they tend to be quite extreme. I think that I have quite a lot to share, and maybe now if I can make it more scenic and more about the exploration and the travelling and everything around it I can reach out to a broader audience.


 


WG: Given the chance, and you were fit again, would you BASE Jump?


KH: Umm… You know honestly I don’t know, because I would. I would love to fly, I would love to jump, but I am scared now. It is a different fear than before, because it is illogical. Because it is a gear failure and a fear of something that I cannot control. To BASE Jump you have to be able to deal with the consequences, and I am not now because I can’t do this one more time. These have been three of the toughest years of my life, and I know that I can’t go through that again. And if I can’t do it again I don’t really think I can BASE Jump either, because I can do everything right and it can still go wrong.


 


WG: Would you recommend it to someone else?


KH: The people who want to get into BASE Jumping have to be passionate about it obviously. I can show some amazing footage, some beautiful locations, and some pretty horrifying scars and then they can choose for themselves.


 


The strength of character to be able to pick herself up after her near-fatal experience and literally get herself back on her feet is truly inspiring. Karina’s openness and willingness to talk about such a tragic experience was surprising and I thought particularly her complete lack of regret despite a painstaking three-year recovery was quiet astounding.


I was then given the privilege of watching the premiere of her film 20 Seconds of Joy. In the intimate screening room of the Soho Hotel a select group of journalists and Red Bull employees were set on a rollercoaster journey of emotions for just over an hour.


The film in many ways is quiet refreshing, as unlike most extreme sport videos it does not just show the extraordinary daredevil antics which the athletes undertake. Instead the focus is on the danger and the impact on the sportsman’s personal life and what those closest to them think of their chosen career. Culminating in footage from Karina’s helmet-camera of the accident, the broken and helpless athlete who had been indefinitely sentenced to life in a wheelchair is shown in stark contrast to the woman who showed no fear. Especially given she was sat at the front of the theatre with no signs she had ever been involved in an accident, the final scenes are so powerful many were left speechless and evidently moved.


Will Gilgrass


Interview with Carina Hollekim - by Red Bull


Red Bull Reporter - Interview with Karina Hollekim


Karina Hollekim is one of the most inspirational, remarkable and self-motivated people one could be pleased to meet. Most people have childhood dreams, but not many are ever realised – especially if the dream is to fly! Will Gilgrass meets her.


The 33-year old Norwegian achieved this dream, as she spent six-years as a professional BASE Jumper. However, in August, 2006, during a routine skydive in front of 5,000 onlookers around Lake Geneva, Switzerland, disaster struck. A parachute malfunction sent her crashing at 100-km/hour to the ground, shattering both her legs and leaving her life in the balance.


Miraculously she survived, and despite picking up 25-fractures and being told she would never walk again – just a year on she was rock climbing. I was sent to Soho by Red Bull to meet this incredible woman before the premier of her biographical film 20 Seconds of Joy.


Will Gilgrass: You started off skiing from a very young age, what was the progression into BASE Jumping?


Karina Hollekim: I began when I was 4-years old and then I got into free riding, and big mountain skiing at quite a young age, getting sponsorship at 16. I always had that dream about flying. I was fascinated by the birds from when I was a little girl, and I actually remember one time when I was at school my teacher asked me to tell her about my dreams. So I said I wanted to fly… She told me that it was a nice dream, and I had to be more realistic in life because people can’t fly. But little does she know, because I kept that dream.


 


WG: What did your friends and family think when you got into BASE Jumping?


KH: My Dad wasn’t super-psyched about it obviously! I had been injured quite a lot during my skiing career – breaking almost every bone in my body. But, he accepted my choices and has been supporting me, asking and telling me to be safe.


 


WG: BASE Jumping must have taken you to some amazing places, which ones stand out?


KH: BASE Jumping takes you to some really magnificent, really remote amazing places; but what is cool about is that there are so many levels of BASE Jumping. You can go to a huge city like New York and be captivated by the buildings and structures, and you can jump off construction projects to hotels or anything in Downtown New York – which is pretty fascinating; and challenging because of the winds. But for sure I’m a nature girl, and I love to hike in the mountains and to climb. Sometimes the jumps that you remember the most are the ones you have been fighting the most to achieve. Maybe you have been rock-climbing for 12 hours straight. Then when you finally make it to the top you sleep only to be woken up by the wind, and it is too windy so you can’t jump and have to repel back down, and the day after you try and do it all again. Then finally you get to jump.


 


WG: What gives you the biggest thrill? Is it the preparation because you have said about the challenges of reaching the top of mountains, and I read a story about you illegally getting ready for a jump in a hotel toilet in Las Vegas; or is it the few seconds in the air itself; or perhaps the feeling of accomplishment?


KH: It is the whole package. Some jumps like the illegal ones are ‘Mission Impossible’, you feel like you are on a James Bond mission, and you have to sneak around. It is all the excitement before hand, making the jump, and the payback afterwards from succeeding. But again it is also about nature, if you walk or climb it is about the visuals and the scenery around you. Some of the most amazing sceneries I have been around are in Africa, in Mali. In the glaciers of Alaska and even travelling in my own country, it was only when I started BASE Jumping that I began to explore and see Norway because you seek out all those hidden valleys which you wouldn’t go to if wasn’t for jumping.


 


WG: What keeps BASE Jumpers going? Is it the challenge to push the boundaries?


KH: I think yer, for sure. I need a challenge so that I feel like I have actually accomplished something, and I think all BASE Jumpers are the same. I seek out the situations that make me scared, that force me to feel. Because in everyday life we are protecting ourselves from all sorts of emotions that we can’t control; but in BASE Jumping you can be forced into an emotional rollercoaster. You go from extreme happiness to extreme fear in seconds – it is breathtaking and captivating.


 


WG: Do you think it is important to almost think there are no limits?


KH: No, there are limits for sure, and it is very important to know where they are, where your limits are, because my limits are different from yours. I need to figure out where my limits are, because if I overstep them I will be dead – you don’t joke around with that.


 


WG: If you don’t mind me asking about your accident, how much of the event do you remember?


KH: I remember pretty much everything, honestly. It was a World Cup in paragliding and I was invited there to do a show, and fly in my wing suit. It was actually out of a plane, so it was like another day in the office. I wasn’t scared about it, or worried because it was an easy thing. I remember sitting in the plane and looking down at Switzerland and it was beautiful. I thought that I was a lucky girl, this was my work, this was my profession – how could it get any better than this? I was with good friends, I was laughing, and I was having a good time. I jumped out of the plane. Just as I was about to open my parachute I heard the roars and clapping from the thousands of spectators that were below us – it was perfect. I pulled the parachute and realised immediately that something was wrong. Then 15-seconds later my life had changed forever. What I had was something called a tension knot, it isn’t an actual knot but a build up of tension, and as long as I am hanging below it can’t be undone. I spun into the ground at 100-km/hour. I fractured everything I have from below my waist down. I had 21 fractures on my right side, and they were all open so I had more of my legs outside than I had inside. But it saved my back and saved my head, so I was still alive. I remember thinking that I had messed up, and I have had some friends who have died in the same way. When I hit the ground I rolled over and saw my legs next to me, and at first I wasn’t sure if I was still alive or dead – because you don’t know what it feels like to be dead. I felt the intense pain, but it became a positive thing because I thought that if I could feel this pain it meant that I was alive.


 


WG: Doing something like BASE Jumping you must have appreciated the dangers that came with it; did it ever cross your mind something like this would happen to you?


KH: Yer. As a BASE Jumper you have to realise the consequences and you have to deal with it. I decided that BASE Jumping was what I wanted to do. But before I was very black and white about it, I knew that if I had an accident I would either survive and be fine, or be dead, but suddenly I was stuck in a wheelchair for an indefinite amount of time, and I was the one who had to deal with the consequences. It was much harder and much tougher than I had ever anticipated. I didn’t regret anything, of course it was too bad it happened, but I had no one to blame.


 


WG: So began your amazing recovery – what kind of stuff did you do?


KH: The first thing I did after spending 4-months in the hospital was eating! I had been in bed and lost all my muscles. I weighed 47kg – about 20kg less than what I weigh today – I was just skin and bone. I couldn’t even sit up in a wheelchair for an entire meal as I super weak. I had been an athlete for a very long time and I used my body for everything that I did. I was frustrated and sad and couldn’t use my body because I was linked to a wheelchair and didn’t know if I would ever get out of there. I didn’t know what to do and I couldn’t let off any steam. My PT at the rehab centre came to me one day and threw a pair of boxing gloves in my face, and I sparred with him. It was such a great feeling because I could use my hands. I used so much energy in that session that I was sick for the next two days – but it was definitely worth it.


 


WG: Do you understand the concepts of fear and defeat.


KH: Sure I do! What do you mean?


 


WG: Doing BASE Jumping for a start is remarkable. But then having the determination to fight on from the position you were in…


KH: Why I started doing all the things I did after the injury was because I missed taking part and sharing with my friends. It wasn’t just about the adrenalin of BASE Jumping or anything like that; it was about being with my friends instead of only sitting at the bottom with a cup of tea waiting for them. That was the only way that I could participate. I want to get back to skiing now because that is what I have been doing all my life. And I think for a girl who had been told that she was never going to be able to walk again, to be able to ski again is probably as good as it gets.


 


WG: Now you have been giving talks. What are the main aims of them and how have they been received?


KH: In a way I am just trying to tell my story, and if someone can get something out of it then I feel like it is worth it for me. My story is pretty universal, even though they might not want to jump off a 1000-metre cliff; we all have setbacks in life. If it’s the loss of someone close or disease we need to find the strength to get back on our feet. If my experiences and the way I have been dealing with it, can be an example for others to deal in certain situations then it feels rewarding for me. I try to kind of focus on the thought that people have to ‘dare to dream’ because even if your dream is completely unrealistic and seems a little far off, I still believe that you can do it and you just need to believe in yourself.


 


WG: So you are looking to start skiing again in the next 12-months, what do you hope to do beyond that?


KH: I want to get back to skiing, and the exploration part. Hopefully I will work with some of the film companies that I have already worked with and make expeditions more scenic than they have been; they tend to be quite extreme. I think that I have quite a lot to share, and maybe now if I can make it more scenic and more about the exploration and the travelling and everything around it I can reach out to a broader audience.


 


WG: Given the chance, and you were fit again, would you BASE Jump?


KH: Umm… You know honestly I don’t know, because I would. I would love to fly, I would love to jump, but I am scared now. It is a different fear than before, because it is illogical. Because it is a gear failure and a fear of something that I cannot control. To BASE Jump you have to be able to deal with the consequences, and I am not now because I can’t do this one more time. These have been three of the toughest years of my life, and I know that I can’t go through that again. And if I can’t do it again I don’t really think I can BASE Jump either, because I can do everything right and it can still go wrong.


 


WG: Would you recommend it to someone else?


KH: The people who want to get into BASE Jumping have to be passionate about it obviously. I can show some amazing footage, some beautiful locations, and some pretty horrifying scars and then they can choose for themselves.


 


The strength of character to be able to pick herself up after her near-fatal experience and literally get herself back on her feet is truly inspiring. Karina’s openness and willingness to talk about such a tragic experience was surprising and I thought particularly her complete lack of regret despite a painstaking three-year recovery was quiet astounding.


I was then given the privilege of watching the premiere of her film 20 Seconds of Joy. In the intimate screening room of the Soho Hotel a select group of journalists and Red Bull employees were set on a rollercoaster journey of emotions for just over an hour.


The film in many ways is quiet refreshing, as unlike most extreme sport videos it does not just show the extraordinary daredevil antics which the athletes undertake. Instead the focus is on the danger and the impact on the sportsman’s personal life and what those closest to them think of their chosen career. Culminating in footage from Karina’s helmet-camera of the accident, the broken and helpless athlete who had been indefinitely sentenced to life in a wheelchair is shown in stark contrast to the woman who showed no fear. Especially given she was sat at the front of the theatre with no signs she had ever been involved in an accident, the final scenes are so powerful many were left speechless and evidently moved.


Will Gilgrass


Friday, March 20, 2009

Former judge Marcus Einfeld gets at least two years' jail ... all for lying about a $77 traffic fine




Marcus Einfeld arrives at court for sentencing.

Marcus Einfeld arrives at court for sentencing. Photo: Jon Reid



Former Federal Court judge Marcus Einfeld has been sentenced to at least two years in jail for lying to evade a speeding fine three years ago.


In a packed hearing room at the NSW Supreme Court, Justice Bruce James imposed a maximum three-year sentence on the 70-year-old for offences that struck "at the heart of the administration of justice".


"Any lawyer, and especially a lawyer who has been a barrister and a judge, who commits such an offence is to be sentenced on the basis that he would have been fully aware of the gravity of his conduct," he said.


Einfeld had pleaded guilty to perjury and making a false statement with intent to pervert the course of justice, to avoid a $75 speeding ticket in 2006.
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His lawyer, Ian Barker, QC, said Einfeld's tireless work for the disadvantaged and other mitigating factors justified the imposition of a non-custodial term.


But Wayne Roser, SC, for the Crown argued Einfeld should be jailed full time, saying the counts were "in the worst case category" of such offences.


Justice James said the retired judge engaged in "deliberate, premeditated perjury" in order to avoid incurring demerit points on his driver's licence.


He concluded Einfeld had engaged in "planned criminal activity", detailing the numerous lies in his police statement when he asserted he was not driving his car when it was clocked going 10kmh over the speed limit in the Sydney suburb of Mosman.


Justice James referred to the offences as striking "at the heart of the administration of justice".


Justice James set a non-parole period of two years.


After the sentence was imposed, well wishers went over to the dock where Einfeld embraced and kissed many of them.


At the suggestion of corrective services officers, he handed over his valuables, including his mobile phone.


'Oh, the bag is packed'


In reply to a comment from one supporter, Einfeld said, "Oh, the bag is packed," and he was then escorted out of the dock.


Outside court, Detective Superintendent Colin Dyson said there had been "no winners here today, but justice has been served".


The head of the fraud squad and commander of Strike Force Canter said the investigation was lengthy and "very intricate".


The jail term imposed on Einfeld sent out a message that for "anybody who is thinking about engaging in this type of activity, it is not worth it".


"For the sake of a small monetary penalty, people's lives can be absolutely ruined," Detective Superintendent Dyson told journalists.


He said Einfeld was the only person who knew why he did what he did.


In January 2006, Einfeld's car was caught by a speed camera doing 60kmh in a 50kmh zone. Rather than accept the $77 fine at his court hearing in August 2006, Einfeld said a friend of his, American college professor Teresa Brennan, had been driving the car.


It later emerged that Ms Brennan had died three years before the speeding offence took place.


Einfeld continued to deny any wrongdoing until his hearing, when he pleaded guilty to both charges. Einfeld's psychiatrist, Dr Jonathon Phillips, told the sentencing hearing that his patient had been treated for depression in 1996 and 2006, and had been diagnosed with prostate cancer.


An Aboriginal elder, Madeline McGrady, praised Einfeld's work with indigenous communities when he was Human Rights Commissioner in the 1980s.


In a separate hearing, Angela Liati was found guilty last month of making a false police statement by saying that she had been using Einfeld's car at the time of the speeding offence. Liati is on bail awaiting sentence.


- with AAP





 


Saturday, March 7, 2009

Perrin vanishes like a billabong in a drought | The Australian





FORMER Billabong clothing empire wunderkind and Gold Coast multi-millionaire Matthew Perrin has gone to ground after this week being declared bankrupt with debts of $28 million.



Mr Perrin's brother Fraser - a former Queensland rugby union player and board member of The Southport School - said he had been unable to contact the former Billabong chief executive. "If I could find him I'd ring him as well," he said. "I don't know where he is."


Matthew Perrin, who spent four years on the BRW Rich List with his wife, Nicole, recording a peak value of $151 million in 2002, filed for bankruptcy on Tuesday with debts of $28.2 million to 20 unsecured creditors.


It is becoming apparent that although he reportedly had problems with a real estate investment in China, he had other difficulties relating to horse racing interests in Australia. Also, his personal fortune may not have been as high in recent years as was imagined. Two family companies, Christie Queensland Pty Ltd and MDP Consolidated Pty Ltd, have gone into forms of administration in recent days and are likely to be wound up.




A long-time, big-scale punter and former owner of as many as 60 horses, Mr Perrin owes $1.62 million to seven bookmakers, mostly corporate bookmakers offering odds online.




He owes $800,000 to Centrebet managing director Con Kafataris and a combined $460,000 to Victorian bookies Alan Eskander and Frank Hudson. Mr Perrin has an association with the gambling industry stretching back to the early 1990s when, as a university student, he spent more than three years working for bookmaker Laurie Bricknell, whose daughter Nicole is Mr Perrin's wife.


He owes a further $13.5 million to the Commonwealth Bank, secured against a Mermaid Beach unit that he bought in 2007 for $4.3 million and which by now may be worth only $3.5 million. Mr Perrin shot to fame in financial circles in 2000 when he became chief executive of Billabong, which listed that year as a market darling, with the group's shares closing at a 37 per cent premium to its $2.30 offer price.


Two years earlier Mr Perrin, then a little-known 26-year-old Gold Coast solicitor, teamed up with former Qantas chief executive Gary Pemberton to buy a 49per cent stake in surfwear giant Billabong from its co-founder Rena Merchant.


Ms Merchant, who founded Billabong in 1974 with her former husband Gordon, was paid $26.4million for her stake by Mr Perrin, his brother Scott and Mr Pemberton.


The deal with Ms Merchant paid off for Matthew, who in 2002 sold 60 per cent of his holding, reaping $66million. But that move caused a furore, with the Billabong chief executive failing to tell the board he planned to sell, and he resigned.


Ms Merchant, speaking yesterday from Queensland's Sunshine Coast, where she owns and operates an environmentally aware "organic golf course" at Boreen Point, said she did not regret the sale. "We did what we did at the time and we wish (Mr Perrin) all the luck in the world: it sounds like he needs some," she said.


"I only met the man twice which was when (the sale) was negotiated."


Matthew Perrin moved on too, selling a controlling stake in his software group RuleBurst to Larry Ellison's Oracle Group last year in a deal that was described as being worth $100 million.


That claim, which did not come from him, served to reinforce the notion of great wealth but in fact he ended up being paid only $242,500 for a parcel of options in RuleBurst sold on December 30, according to a statement of affairs filed during the week.





 


Monday, November 24, 2008

When Twitter Met Facebook: The Acquisition Deal That Fail-Whaled | Kara Swisher





 


[Updated with new details about deal, including who worked on it and info on a cash component.]


About three weeks ago, Facebook and Twitter ended several weeks of serious talks, in which Facebook was offering to acquire Twitter for $500 million of its stock, which also included a cash component.


While rumors of Facebook’s interest were brought up in an interview with Facebook CEO Mark Zuckerberg at the Web 2.0 Summit a few weeks ago, some shot down the idea as silly.


Quite incorrectly, as it turns out, since top execs at both Facebook and Twitter were right then at the tail end of discussions, which were initiated by the privately held Facebook in mid-October, about bringing the two together.


Those talks, sources on both sides said, are now over.


So why did the deal break down?


Well, as is usually the case, over price–was $500 million worth of Facebook stock actually worth $500 million?–and the typical concerns about integration and costs.


But, more important, it seems, was a feeling among Twitter investors and execs that the start-up should still take a shot at building its revenues–there are none right now–as well as it had done at building its growth.



 


“It’s more about timing,” said one person familiar with Twitter’s motivations. “There is a strong feeling that there is still an opportunity–even with the economic downturn–to blow this thing out.”


Still, combining the world’s fastest-growing social-networking site with what is quickly becoming the best-known microblogging service is actually a natural fit.


That’s especially true given that Facebook–for all its powerful online social connections–has seen Twitter race past it in innovating in the “status update” arena.


While some sources at Facebook said Zuckerberg was becoming frustrated by the buzz Twitter was getting–a market that should have been dominated by Facebook–others at the company said he was interested in buying Twitter because of his respect for its progress.



 


Indeed, at the Web 2.0 interview, Zuckerberg called Twitter an “elegant model” and said that he was “really impressed by what they’ve done.”


Indeed, with about six million registrations, as reported in October, up 600 percent over the last year, the San Francisco-based Twitter–launched in 2006–has had impressive growth.


 


(It has also been plagued by technical issues, which are–to be fair–decreasing.)


In any case, for those not familiar with it, the premise of Twitter is dead simple: A registered user logs in via the Internet or a mobile phone and answers the “What are you doing?” question the service asks in only 140 characters or fewer.


It’s quite a clever idea, although–so far–not a money-making one.


To try to goose that, Twitter’s board replaced the engineer who created Twitter, Jack Dorsey, with another founder, Evan Williams, who had served as its chairman and chief product officer.



 


The more experienced Williams (pictured here) had already built one company–Pyra Labs, which created the Blogger blogging service–that he sold to Google in 2003. He also started the audio and video search site Odeo, where Twitter was actually born.


Still, its investors have not come down on Twitter to hold back its growth efforts, and have handed over $20 million to the start-up so far. In its last round, Twitter was valued at $98 million.


Its funders include: Union Square Ventures, Charles River Ventures, Digital Garage, Spark Capital and Bezos Expeditions, backed by Amazon Founder and CEO Jeff Bezos.


In addition, well-known Silicon Valley figures, such as Marc Andreessen and Ron Conway, have also invested. Interestingly, Andreessen is also on Facebook’s board.


Other private investors include FeedBurner Co-Founder (and now Googler) Dick Costolo, former Epinions Co-Founder Naval Ravikant and former Googler Chris Sacca.


Twitter needs all the investors it can get, since it has no revenue, although it has been exploring things like charging business customers and adding advertising into the consumer service.


Lack of revenues was an issue for Facebook, said sources, especially related to fees Twitter pays for delivery of its messages to cellphones.


While the issue has been manageable in the U.S., Twitter cut off its SMS support in some international markets this summer because of too-high costs.


But, if Twitter was offered to Facebook’s 120 million users, Facebook execs estimated that it might have to deal with huge SMS fees–up to $75 million annually.


“Facebook has its own revenue-generating challenges,” said one person close to the company. “As much as Twitter would give them a lift in the status area, it was still a worry.”


Not enough, said several sources, to stop Facebook from making another approach at some point in the future. “We’d hate to see Twitter go to another company,” said one source.


Indeed, while all are even more price-conscious than Facebook, large companies that could also be interested include: Google (GOOG), Yahoo (YHOO), Microsoft (MSFT) or a large telecom company, such as Verizon (VZ).


If it had completed the deal to buy Twitter, it would have been Facebook’s most significant acquisition by far.


Zuckerberg and Williams did meet and get along well, but the deal was primarily negotiated by Spark Capital partner Bijan Sabet (Spark is a Twitter investor) and Facebook deal guy Dan Rose.


But in this time, at least, the Twitter side was still not interested in selling at the price Facebook had offered.



 


The $500 million offered was in an all-stock form, said sources on both sides, at the $15 billion valuation that came from the Microsoft’s investment in the company last October.


The Twitter side felt that figure was inflated and the shares should be valued at the lower figures that have also been reported for Facebook’s true valuation, more in the $5 billion range.


That would have given the deal a $150 million price tag, which was seen as too low, especially since it was in Facebook stock and not cash initially.


In fact, Twitter wanted cash, which some sources say was offered by Facebook in the $50 to $100 million range, in addition to stock, but taking too much stock was still a major issue.


There are other ways the pair could have approximated a safer choice for Twitter, via warrants, of course, or other methods.


But, said several sources close to Twitter, the primary reason for not selling was because its board simply did not want to yet or perhaps ever.


Said one source: “The question is, is it really a good idea to sell on the first chance you get?”


Well, for Twitter, we’ll just have to wait and see about that, of course.


[Photo of Evan Williams by Joi Ito. Licensed under Creative Commons 2.0 By-Attribution license.]


 




Saturday, September 29, 2007

Karina Hollekim: The lady who can fly






She had walked into the hotel “very much like a lady,” in a skirt, carrying shopping bags. The front desk asked her if she would like to leave her bags there. “No, I might forget to pick them up,” she bluffed, calculating how to get through the tight checks that stop B.A.S.E jumpers conquering the oh-so tempting target.


In the disabled toilet, she put together her kit – taken apart and in different bags to make it look like climbing gear. She changed out of the skirt. Later, she was arrested, but only held for four hours. They had nothing to charge her with.


Her eyes gleam as she tells the tale.


Karina likes flying. She likes heights. She likes fear, which she believes is a positive thing which makes her stronger. The 31-year-old blonde, slim, sporty Norwegian buzzes with enthusiasm. She says she is “lucky” and “lives in a dream world”.


She was three years old when she started looking up. Karina got the outdoor spirit from her father, a ski instructor. On walks, he would take her with him.


“He cut two holes for my legs in his climbing backpack. I said I was scared because it was high, and he just told me to look up.”


She began craning her neck then, searching for things to jump off.


Karina’s first B.A.S.E jump (using only one parachute – ‘no second chance’) – was at Twin Falls in Idaho, USA. “It didn’t really give me anything”. She was too scared, she says. Still, she must have liked it enough. She jumped around 400 more times from Building, Antenna, Span or Earth (the four categories of fixed object which qualify for inclusion in the extreme sport).


Her last jump – in Switzerland last November – was “supersafe”. A routine demonstration skydive, from a plane, over water, with friends.


It nearly killed her.


She shattered both her legs – “25 open fractures in both my femurs and knees and everything”. She lost three and a half litres of blood in 45 minutes. “They were about to lose me because of that.” A rescue helicopter took her to hospital, where she woke up two days later to be told she would never walk again. For one month she could not be moved. Then she spent four months in a hospital at home in Norway, half a year in a wheelchair, and a year in rehab.


Karina has not jumped since.


That day, her equipment had been checked. It was working properly. “We did everything right,” she says.


She and her friends were dressed in wingsuits – a ‘batman’ outfit which gives you the ability to fly like a bird. “We were flying, six friends together. It was a beautiful jump, we were just laughing, and I could see the smile of my friend as I went over and under her.”


Karina had to land in a different place because she was filming. As she opened the parachute it created a tension knot on the line. “I immediately realised,” she said.


“This is one of the things that kill B.A.S.E jumpers. I knew I was going to die.”


She hit the ground – solid rock – at more than 100kph.


She describes this as “lucky”.


Looking up again.


Lucky to have smashed both legs and become reliant on a wheelchair?


Lucky to be alive, she explains. Lucky that there was a rescue helicopter there because it was an event. And lucky that she had hit rock, so she didn’t roll.


“By hitting this rock I shattered my legs but saved my back and my head and it saved my life. There is no point in thinking about what if.”


She felt sad and depressed “for a week”.


She had always used her body to let out frustration. Now, when she needed it most, it was no use as an outlet.


She thought to herself: “I am going to be stuck here in this chair so if I am sad it is just going to punish me.”


“I wouldn’t regret anything, not one single jump, not even the jump that made me sit in the chair.”


“There are a lot of good moments even if you are in a wheelchair.”


Remarkably, she gradually began to walk. Her progress has been slow. She moves stiffly, with a severe limp, and gets tired very quickly. The best way is to look ahead little by little so that she is not disappointed. If someone had told her a year ago that she would only have reached this point by now, she may not have been able to cope with it.


Yet she is walking. And she gives the impression that she is not done with recovering yet.


What keeps her going through the dark days?


Friends visit her from all over the world. There was not one day in hospital without someone there. “In a way I almost feel obligated to them.”


And then there is The Hand of Fatima project.


Before Karina’s accident she and a team had travelled to Mali, to jump off the Hand of Fatima, a huge Red Sandstone pillar Karina had spotted in a magazine.


“I was captured by the beauty of the rock.”


Le Main de Fatima is Mali’s highest peak, on the edge of an imposing desert. The team had planned to film there as part of a documentary. But when they realised how much material there was they began a film about that one jump. The proceeds, they decided, should go to help the villagers of Daari, who lived in the shadow of the rock.


“It was amazing to see how poor they were, and still they were able to keep their smile,” says Karina.


With a wide-eyed smile herself, she remembers that place, that freedom. The best jumps are about the journey, she says – the more difficult the better. “The jump is just a bonus.”


The Hand of Fatima was difficult. Karina suffered two severe heatstrokes in temperatures of up to 45 degrees. The water supply the team had ordered did not arrive. They climbed up the rock the first day – a 12 hour trek – to be met by darkness and have to camp out overnight. In the morning they awoke to a sandstorm. Exhausted, demoralized, and knowing there was no chance of jumping that day, they returned to the camp.


“The mountain had claimed all our energy. To us we had failed.”


Waiting for them, having sat under a bush at the bottom of the rock for hours, were the children.


“We met all the smiles of the kids and they were clapping and cheering on us.”


“And we realised that for them it was a dream just climbing to the top of the mountain.”


“It was those kids that gave us the motivation to go back up.”


So the team tried again.


Standing at the top the next day, Karina didn’t feel good. She was dizzy and unconcentrated after the long wait. She was scared of being made ill by the heat again. She didn’t feel strong. “I didn’t feel like I was on top of the jump. I had control, I was just not where I wanted to be.”


Against her instinct though, she went for it.


Things went wrong, and a wind gust, combined with Karina’s fear sent the jump out of control.


“I remember seeing the cliff and thinking that I am going in.”


“I remember thinking I am going to die on this jump.”


She had to turn away from the wall. “Fight it, fight it, fight it,” she was thinking.


She slowly turned the wingsuit, knowing then that she faced the problem of the boulder field below.


At last, she managed to land the jump, opening her parachute lower than she had ever done before. She broke her wrist and her tailbone on landing.


“I was angry with myself for putting myself in the situation. I was relieved, and happy of course.”


After Daari, Karina appreciated the little things.


“It makes you realise how lucky you are to be able to travel the world and live your dream.”


“It makes you open up your eyes.”


The film The Hand of Fatima has won twelve first prizes so far around the world, providing money to build a well in Daari, and a school nearby. The children have been given bikes so they can get to school.


“It feels very rewarding,” says Karina. She is just frustrated that she has not been able to be more involved because of her accident.


When you can no longer walk, that also makes you appreciate the little things, she says. Her perspective on life has changed: “The simple things are no longer simple. It would take 15 minutes to get out of the bed.”


“Going to the bathroom on my own was a great victory.”


After all this, still her infectious enthusiasm for jumping shines through.


Why does she do it? Why jump? Isn’t she scared?


“Yes I am scared, of course I am scared; I am human. The difference is that I like it, I want to have that feeling.”


“Maybe for a lot of people it paralyses them. In a way for me it is the opposite. I search for the feeling.”


And the risk?


“You have to accept the fact that this might kill you. I think I have broken almost every bone in my body. I have lost a lot of friends along the way.”


It is a question of balance, she explains.


“If pleasure is higher than the risk, then go for the jump.”



  • An hour-long film, 20 Seconds of Joy, has been made of Karina’s experience. It opens in Munich next month.





 


Monday, October 9, 2006

Google Has Acquired YouTube




Moments ago the deal was confirmed. In their largest acquisition to date, Google has acquired YouTube for $1.65 billion in an all stock transaction. Both companies have approved the deal, which should officially close in the fourth quarter. YouTube’s 65 employees will remain with the company at YouTube’s San Bruno headquarters.


Details are also emerging that Yahoo was in the bidding war until very close to the end.


Google is hosting a conference call and webcast to discuss the deal. My notes are below, and a recording of the call is here. You can also hear a replay of the call via telephone until midnight Monday, October 16 at 888-203-1112 domestically and 719-457-0820 internationally. Confirmation code for the replay is 2260624.


This went from rumor to reality incredibly fast.


My Notes from the call:


Eric Schmidt, Google’s CEO, Chad Hurley, YouTube’s CEO, David Drummond, Google’s General Counsel and others are on the call.


Eric is starting the call and immediately started talking about the content deals announced today. He says Chad Hurley and Steven Chen, YouTube’s founders, remind him of Larry and Sergey.


Chad is now talking about the reasons he agreed to be acquired by Google. He says Google’s ad platform will integrate perfectly into YouTube. Says the cultures are very similar.


Steven Chen is now talking, saying that Google’s platform combined with YouTube’s “innovative technology” is a perfect match.


Sergey say “Google’s mission is to organize the worlds information…and video is an important part of the worlds information”. Says Google’s core strength is search and advertising.


Questions just started. I’ve put myself in the queue to ask about the Fox/Myspace angle.


Mary Meeker at Morgan Stanley is first. Asking about YouTube content and how it will be integrated into Google. And how content will be monetized.


JP Morgan is asking about why all stock, and why buy YouTube when Google has its own video site. David Drummond says its a stock deal to make it tax free to YouTube shareholders. Eric says that YouTube was in a unique position and had a unique product offering that Google admired.


Question about YouTube’s new technology to auto-recognize copyrighted content.


Question about “pre-roll ads”. No real answer here. Saying they will look at all options.


Question about revenue shares given to content providers and how the company was valued. Not anwered – “we do not go into details on financial deals”. Eric is saying that deals are very good for partners. David Drummond says they arrived at a purchase price that is “very fair”.


Lots of questions on copyright issues.


ABC News question on integration between Google and YouTube. Steven Chen says they are working on a list of potential integration points, will take weeks to sort out. Sergey is saying that integration with search is going to be important, and that they will be experimenting. Eric is saying that Google Video is not going away.


Question about the bidding war for YouTube. No answer.


Great question about Chad’s statement this summer that YouTube plans to remain independent. Chad says that they will stay independent under this deal, so best of both worlds. No real way to answer this question.


That’s it. As usual with these type of calls, I wasn’t able to ask a question. :-)


Congratulations to YouTube on this deal. I remember when I first wrote about YouTube in August of 2005 (I wrote that post from a Starbucks while on a road trip), and meeting Chad Hurley at the very first TechCrunch party.







YouTube image

 























Website:youtube.com
Location:San Bruno, California, United States
Founded:September 11, 2005
Acquired:October 9, 2006 by Google for $1.65B in Stock

YouTube was founded in 2005 by Chad Hurley, Steve Chen and Jawed Karim, who were all early employees of PayPal. YouTube is the leader in… Learn More




Information provided by CrunchBase






 


Tuesday, July 4, 2006

Former NAB traders jailed

July 4, 2006 - 11:21AM


David Bullen.

David Bullen.
Photo: James Davies



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Two former National Australia Bank traders have been jailed over their roles in the $326 million rogue trading scandal that rocked Australia's largest bank.


Judge Geoff Chettle of the Victorian County Court sentenced one of the traders, David Bullen, to an effective sentence of 44 months with a minimum of 30 months to be served before he is eligible for release on good behaviour.


Judge Chettle sentenced Vince Ficarra to a term of imprisonment of 28 months with a minimum of 15 months to be served before he is eligible for release on good behaviour.


Ficarra, 27, of North Fitzroy, and Bullen, 34, of Eversley near Ballarat, were found guilty in May on a string of charges related to the unauthorised trading on NAB's foreign exchange options desk, which cost the bank $326 million in 2003/04.


In sentencing Bullen, Judge Chettle told the court the two traders and the rest of their team saw themselves as "invincible".


"In the corporate culture that existed, you forgot your legal responsibilities to the bank, its management and its shareholders," Judge Chettle said.


"General deterrence must be the principal sentencing consideration for crimes such as yours."


Judge Chettle said that, despite their crimes, Bullen and Ficarra showed good prospects for rehabilitation.


He said Bullen had made full admissions of his criminal conduct and when he gave evidence at his trial, had effectively made a complete confession.


"So far as you are concerned Bullen, it appears that you embraced Buddhism somewhere around 2002 and your conduct in contesting the trial springs largely from a peculiar and particular philosophical approach you have to life rather than out of any real denial as to your conduct.


"You, Ficarra, attempted to convince the jury that your conduct was not dishonest."


Judge Chettle said that because Bullen lived in a rural area, he was not eligible to be considered for home detention.


The judge said he had reduced the sentence he would otherwise impose to reflect the fact that Bullen would not be able to benefit from home detention but would otherwise be eligible for it.


"Your criminal conduct was extensive," Judge Chettle said.


"You were a senior trader and knew full well that your conduct was illegal.


"Your conduct continued over many months. However, on the other hand, to your credit you co-operated fully with the authorities."


Judge Chettle said he accepted that Bullen's offending occurred "in a culture of profit-driven morality".


"Your employment required you to take risks in order to achieve the projections and targets set for your desk.


"To further your career, you had to succeed."


Judge Chettle said he accepted Ficarra was the most junior of the offenders at the NAB foreign exchange options desk, that his role was "largely mechanical" and that he carried out the instructions of his superior Luke Duffy.


"You were not the author or architect of any of the dishonest conduct but had an active role in entering the false foreign exchange spot trade transactions because you were the member of the team performing early duty at a time that the false entries had to be made in order for the fraud to be perpetrated.


"Further, I note that you were not charged with the option offences unlike your three co-offenders."


Judge Chettle accepted Ficarra's crime took place "in a culture where profit and loss distortion had occurred in the past and where risk-taking was an inherent part of your occupational duties".


"I also accept that profit was perceived as being the be-all and end-all of business and that you somehow became swept up and carried along by the personality of Mr Duffy.


"You became enmeshed in the culture that saw you seeing yourselves as invincible and somewhat arrogant."


Judge Chettle said he had taken into account matters in Ficarra's favour but to some extent Ficarra's statement had indicated a lack of remorse for his crimes in that he still maintained that some of the arguments he raised during the course of his trial were valid arguments.


The judge said it was clear the jury had rejected these arguments beyond reasonable doubt.


Judge Chettle said he was unable to accede to a request by Ficarra that he be sentenced to home detention.


Some of the assertions made by Ficarra during his trial had indicated that he had almost come to believe "some of the more ridiculous propositions" he had asserted, Judge Chettle said.


On May 27 after a lengthy trial, Bullen was found guilty of 17 of 19 charges of gaining financial advantage for himself and others, along with one count of gaining financial advantage by deception.


Ficarra was found guilty of all charges - 12 of gaining financial advantage for himself and others and one of gaining financial advantage by deception.


In June last year, the former head of the desk, Duffy, was sentenced to 29 months in prison with a minimum term of 16 months for his part in the scandal.


Duffy, then 36 and of Albert Park, and a fourth trader Gianni Gray, 36, of Port Melbourne, had pleaded guilty to three charges of dishonestly using their position for personal gain.


Gray was sentenced to 16 months jail in April this year and ordered to serve a minimum of eight months.


The four men were involved in unauthorised trading that resulted in Australia's biggest bank taking a $326 million hit in January 2004 as it scurried to close down the losing positions taken by the trading desk

AAP