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Sacramento City Council is moving forward with plans to adopt a resolution condemning the Arizona Immigration Enforcement Law, asking for its repeal and asking for a citywide boycott of Arizona companies.
The council made the unanimous decision following a four-hour city council meeting Tuesday night attended by more than 300 people.
Whitman Claims She Wants to Help California’s Small Businesses, But as Head of e-Bay, She Hiked their Costs Repeatedly To Turn a Profit
“‘For a long period of time, eBay generated revenue growth by raising fees on sellers,’ said Scot Wingo, the founder of Channel Advisor, which helps small businesses sell on the Internet. ‘Now everyone is starting to realize that was unsustainable.’” – Brad Stone, New York Times, February 22, 2009
“Sellers also complain that, under pressure to meet Wall Street expectations, eBay under Whitman repeatedly jacked up fees, driving off many sellers and making the site far less profitable for others.” - Ken McLaughlin/ Pete Carey, San Jose Mercury News/ Contra Costa Times, October 4, 2009
Whitman Led e-Bay’s Purchase of Skype, Costing the Company More than $1 billion in Losses
“Ms. Whitman also led eBay’s 2005 purchase of the Internet calling service Skype, in part based on the belief that eBay buyers and sellers would want to talk to each other to close deals. Most did not, and less than two years later, eBay acknowledged the mistake and wrote off more than half of the $2.6 billion purchase price.” – Brad Stone, New York Times, February 22, 2009
“Clearly the worst decision was buying Skype for $3.1 billion, on the questionable theory that eBay buyers and sellers would flock to the service to talk to each other to close their deals. Whitman eventually admitted she paid too much for Skype, and the company took a $1.4 billion write-down. ‘Meg was trying to paper over the cracks with acquisitions, and Skype was an unmitigated disaster,’ said Jeff Lindsay, an analyst with Sanford C. Bernstein. ‘I think she did a good job of keeping the growth going for the first five to seven years. But when the growth started to slow down, her record is a lot more mixed.’” - Ken McLaughlin/ Pete Carey, San Jose Mercury News/ Contra Costa Times, 10/4/09
Whitman’s Reign at e-Bay was “Blemished with Poor Decisions” and a “Series of Ethically Dubious Stock Deals”
“In recent weeks, the Mercury News interviewed numerous current and former eBay employees, buyers and sellers, investors and stock analysts, asking them to judge her performance and predict how it might translate to running the state. The consensus: Whitman was a hands-on and savvy CEO whose reign was somewhat blemished by poor decisions and a series of ethically dubious stock deals.” - Ken McLaughlin/ Pete Carey, San Jose Mercury News/ Contra Costa Times, October 4, 2009
Whitman Raked in Nearly $2 Million Through IPO Spinning, A Practice Now Banned
“…some fault Whitman for her ready acceptance of ‘friends and family’ stock from Wall Street giant Goldman Sachs during the superheated dot-com era. Until the practice was banned in 2003, brokerage houses routinely allocated shares of hot stock offerings to top executives as a reward for giving the investment firms corporate business. Whitman had hired Goldman to take eBay public in 1998. For the next four years, the investment bank allocated to her shares in more than 100 initial public offerings. All told, Whitman made a $1.78 million profit when she sold the stocks. After being singled out in a congressional report that called the IPO system rigged and corrupt, Whitman issued an internal memo to eBay employees saying she got the shares because she was a personal client of Goldman Sachs. ‘There is nothing worse than having your integrity questioned under circumstances where you know that you did nothing wrong,’ she wrote. Yet two professors who focus on business ethics — David Shapiro at the City University of New York and William Black at the University of Missouri-Kansas City — predict the issue might prove troublesome for her on the campaign trail. ‘The fact that she could say she could learn no ethical lesson is illustrative of moral blindness,’ Black said.” - Ken McLaughlin/ Pete Carey, San Jose Mercury News/ Contra Costa Times, 10/4/09