Re: Steve Harmon and his replacement. Funny, Tom Taulli, no surprise. Although I thought he was tied into IIOnline, EdgarOnline, Red Herring or something. Ah, I'm posting to the board of the same company that he wrote for and ceremoniously fired his ass for taking a "vacation"...
In the meantime, here's a relevant article:
The TaskMaster
Ex-Go2Net Exec Taulli Confirms His New Job at Internet.com
By Aaron L. Task
Senior Writer
7/28/99 10:42 PM ET
URL: thestreet.com
SAN FRANCISCO -- A friendlier Alan Greenspan gave markets a lift early but bonds failed to
respond and blue-chips
faded toward the close. Tech averages gained, however, led by resurgent chip and Internet
stocks. (For more, see today's
Market Roundup.)
Scoop Alert Update
Tonight, Tom Taulli confirmed last Friday's scoop that he is going to be named to replace Steve
Harmon as Internet.com's
senior Internet analyst. A press release is expected tomorrow. (But why bother with that when you
can read all about it here?)
A sticking point in the negotiation had been Taulli's contract with Edgar Online, "but it looks like
everything is going to be
worked out," he said. Though a deal has not been finalized, it's likely Edgar Online will continue to
publish Taulli's daily work,
in some sort of "sharing" agreement with Internet.com (I guess Mom was right -- it's better when
you share). Additionally, the
analyst may continue to write a newsletter about IPO filings for Edgar, he said.
Meanwhile, Taulli is still pursuing the Go2Net (GNET:Nasdaq) options that were summarily yanked
from him when he was
fired (he says without provocation or warning) upon his return from a Hawaiian vacation last
spring. (The drama was widely
covered by the financial press, notably by Forbes.)
The firing came just before billionaire investor Paul Allen announced a major investment in Go2Net
-- approved by
shareholders in mid-June. Allen's investment upped his stake to 34% of the company and
ultimately diluted the number of
options outstanding for senior management and other employees.
"If you know you're going to suffer substantial dilution, why not cut down the options?" Taulli
mused. "I think that's what
happened."
Taulli claims he's owed 68,000 options exercisable at less than $9 a share. Go2Net closed today
at 66 3/4 making those
options worth about $3.9 million according to my back-of-the-calculator math (give or take
commissions and other
intangibles).
Not surprisingly, Go2Net has "said they won't negotiate and will not settle," Taulli said. Not
surprisingly, he's pursuing the
company by any (legal) means necessary.
Meanwhile, Taulli recalled one of the first articles he wrote for Silicon Investor (which is owned by
Go2Net) in which he
"canned" Internet.com. "Usually I make negative comments about a company and they hire me,"
he quipped.
In a final bit of irony, Taulli recalls Steve Harmon "helped put Go2Net on the map" with his
favorable analysis. "Now I'm
taking his spot."
P.S.
I traded phone calls with Harmon today and hope to provide an update on his plans in the coming
days. Earlier this week, he
appeared on CNBC representing something called E-Harmon.com. A site by the same name
invites visitors to "sign up for
Steve Harmon's cutting-edge analysis when it goes live!" (Is there such thing as "dead" analysis?)
A source close to the developments said E-Harmon.com intends to be a "focused vehicle for
Internet investing" along the lines
of CMGI (CMGI:Nasdaq) or Wit Capital (WITC:Nasdaq) but "100% Internet."
The source, who requested anonymity, said E-Harmon intends to invest in existing publicly traded
Internet stocks, as well as
serve as a venture capitalist for start-ups.
TSC Special
Associate editor Dan Colarusso gets the first of what I suspect will be many "Specials" with Truth
Serum: Rerouting Takeover
Talk Among Networkers. For anyone who's ever invested based on a rumor or even followed in
amazement the action from
the sidelines, this story (and the column itself) is a must.
Turn on Your Heart Light
Dined last night at Scala's Bistro courtesy of my fiancee's (sorry gals) cousin, who happens to be
heavily involved in power
marketing.
After he explained the intricacies of utility deregulation (did I mention the delicious calamari
appetizer?) and said we will all
someday be able to choose our energy provider (just like long distance!), I asked cousin to get
down to brass wire -- what
should investors do?
Eventually, he said, a few big outfits will offer the entire range of utilities, including
telecommunications as well as gas, electric,
and water. Being a fan of those strangely compelling cartoons, I asked about Williams Cos
(WMB:NYSE) which boasts a
very profitable telecom business.
Yes, Williams is at the forefront but my future in-law was far more enamored with Enron
(ENE:NYSE). If I was Maria
Bartiromo and he was an analyst, I would say cousin was "pounding the table" on Enron. But I'm
not and he isn't.
Interestingly, he's also NOT employed by Enron but by a rival who I won't name to protect his job
(he's family, after all, and
I'm hoping for a nice wedding gift).
Enron rose a fraction today but the stock has been anything but a boring utility. The shares have
climbed steadily since the
market's lows of last September and roughly doubled in that time span. A 2-for-1 stock split is
scheduled to take effect Aug.
13. (Entry point, anyone?)
Cousin also recommended would-be investors search for regional power companies, believing
their days as independents are
few. (I never got to ask for specifics because the main course was being served and "the missis"
was giving me those "stop
talking about business" glances, effectively supported by a few "stop this now" kicks under the
table.)
Ain't love grand?
More eBashing
Turns out I wasn't the only one peeved by eBay's (EBAY:Nasdaq) decision to not broadcast the
Q&A portion of its
conference call Monday night.
Several readers emailed their disgruntlement, with Damon Black of Marco Island, Fla. best
embodying the outrage: "I was
appalled by eBay's call [Monday] night and after yelling and screaming ... at that very moment
[that] night entering a market
order to sell a long-held position, I swore I would never own that stock again! Community indeed!
The intangibles, the glue
solidifying the valuation model, the 'story' Meg is so fond of collapsed at that moment for me."
Methinks he's not alone. (For even more on the eBay conference-call saga, check out Adam
Lashinsky's input earlier today.)
Aaron L. Task writes daily for TheStreet.com. In keeping with TSC's editorial policy, he doesn't
own or short individual stocks, although he
owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment
partnerships. He welcomes your feedback at
taskmaster@thestreet.com.
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