Friday, June 24, 2011

Greed, lies and fakery: Skype Edition.

Felix Salmon's got a better representation of the actions of Skype / Silver Lake Partners, and the attempts at obfuscation especially by Silver Lake Partners, than the original article by Peter Burrows and Joseph Galante in BBW, IMO.

This time, it centers around Yee Lee, a former Skype who left shortly after being fully vested in his stock options.  Turns out, being vested was worthless, because Silver Lake Partners inserted language that allowed Skype to buy back stock options at the original purchase value.  All those gains, of course, get returned back to the rest of the investors.

Looking back with all this perspective, one can't help but laugh, when an anonymous [Silver Lake] investor said that the amount of money involved in the first article by Joseph Galante was not "worth the time to make the phone call" to dispute Galante's article.

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