Andreessen Offers Defense in Wake of ...

Andreessen Offers Defense in Wake of Icahn's eBay Criticism

There are 1 comment on the Wall Street Journal story from Feb 27, 2014, titled Andreessen Offers Defense in Wake of Icahn's eBay Criticism. In it, Wall Street Journal reports that:

Venture capitalist Marc Andreessen defended the corporate-governance practices of the technology industry and said he recuses himself from boardroom discussions that could involve companies his firm is backing.

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Since: Nov 13

Sydney, Australia

#1 Feb 28, 2014
The only measure of a publicly listed company’s success is its return to its shareholders. Johnny Ho is now into the seventh year of his “three-year turnaround” of eBay; he’s expended a whole lot of shareholders’ funds with little sign of improvement—except to his personal wealth. Indeed, apart from PayPal’s contribution, the only way Johnny Ho has been able to maintain eBay’s revenues is by steadily increasing the percentage FVF take on eBay transactions.

So, what does the “smart money” on Wall Street think about the progress of Johnny Ho’s delusion of converting eBay into the “Westfield Mall” of online shopping? Well, in late 2007, when the Ho was already effectively in control of eBay, both eBay’s and Amazon’s stock prices were ~$40; now, with the US stock market at an all time high, eBay is still only ~$56 and Amazon is ~$352.

Ah, but what about all the stock splits, you say? Well, there has not been a stock split by either Amazon or eBay since 2005. But let’s then be fair and look at the value of both these entities since their IPOs, taking into account their stock splits:

eBay: 3 x 2:1 and 1 x 3:1; ie 9 x $56; equates to a current sans-splits value of ~$504
Amazon: 2 x 2:1 and 1 x 3:1; ie 7 x $352; equates to a current sans-splits value of ~$2464

The fact is, Johnny Ho has been an disaster for just about all concerned: since the Ho arrived on the scene, eBay’s long-suffering long shareholders have, relatively speaking, been going backwards—at a quite steady rate of knots—notwithstanding the nonsense that constantly streams from the eBay Dept of Spin …

The only people making any money out of eBay are Johnny Ho and the gaggle of like-bodied headless turkeys that he has surrounded himself with, and with whom he apparently spends all day, in the eBay executive suite, blindly running around in circles, as they hallucinate about how they are going to re-invent the eBay marketplace as the “Westfield Mall” of online commerce for every leading retailer, brand and manufacturer across the world—Dream on, Johnny Ho …

The real question is, just how much longer are eBay’s major institutional investors going to let the Ho turkey avoid the Thanksgiving dinner table with such continuing poor results, and increasingly bad consumer responses in the media about which not even all the hot air generated by the eBay Dept of Spin can counteract?

I also have to wonder if Pierre Omidyar has ever thought about just how much more fabulously wealthy he might now have been sans all the damage being done to the eBay marketplace by Johnny Ho. Omidyar’s current worth of ~4.7 billion dollars may well have been a great deal more; indeed, had he, in August 2007, traded in all his eBay shares for shares in Amazon, he would instead now be worth ~43 billion dollars! Now that, surely, is something for all eBay’s major "long" investors to think about ...

Clearly, the message from the smart money on Wall Street is that eBay Inc. is a "dog" and Johnny Ho is an utterly incompetent dog handler ...

eBay / PayPal / Donahoe: Dead Men Walking ...

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