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gnulaw (54.07)

[Update3] Is the End (Private/Acquisition) of Geeknet (GKNT) Imminent? What is Langone's Endgame? Kenneth Langone Delivers on Promise* of Geeknet (GKNT) SourceForge Layoffs...R&D Spending Down 36.8%.

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September 04, 2010 – Comments (2) | RELATED TICKERS: GKNT , BBY , YHOO


Kenneth Langone delivers on promise of Geeknet (GKNT) SourceForge Layoffs...R&D Spending Down From 16.6% for 6 mo ending June 30 2009 vs 10.5% same period 2010.

According to publicly disclosed information including the most prominent business-oriented social networking site since August 4th and as of September 1st Geeknet has let go of: the CEO, CTO, CMO, COO, VP Human Resources, Geek.net Editor and Manager (all sites), Geeknet Senior Web Developer (SourceForge.net re-architecting), Geeknet Director of Marketing, Geeknet Information Architect, Geeknet Systems Programmer/Analyst II, Geeknet Manager of Analytics, Geeknet Campaign Manager...I should note that no Geeknet colleague has recommended the former CEO, Scott Kauffman...qed.

In addition to jettisoning said members of the SourceForge/Geeknet team, Geeknet (GKNT) shareholders are left with a completely deteriorating, irrelevant, out of date stats...i.e. a non EMH corporate Geek.net website...all pointing to the hypothesis:

Is a takeout of Geeknet (GKNT) imminent given this situation is arguably simply not sustainable.

12:27/18:09 Robert Culbrith (Analyst questions August 4th Q2 ending June 30 2010 conference call)

ThinkEquity:  "Couple of questions for Mr. Langone, what attracted you to the opportunity in Geeknet when you're referencing the company's potential opportunities as far as challenges and then also secondly when you consider the management changes you make going forward are you also planning to engage in a top-down strategic evaluation or are you pretty much already have in mind what you plan to do with the business especially with the media business going forward?

Kenneth Langone (13:12): "Let me start with your first question. [We] like ThinkGeek. [We] like the ThinkGeek business very much.  [We] think the Open Source business, the media business has very significant potential. It needs work. It certainly needs appraisal of cost to benefit. But [we] believe when you consider the metrics here, the numbers, that there is a very significant opportunity. And my partners and I, [we] collectively own about thirty percent of the stock, believe there is a singular opportunity here. The other thing is if you look at the Balance sheet, it's a very solid company. So, the bottomline is, [we] think there are, and by the way, probably most importantly of all I didn't say are the people. [We] spent some time here with the people [we] sense a level of energy and a desire to win that are to me very very good indicators of an exciting future..."

Within four weeks of that discussion...(in descending chronological order)

(August 28, 2010)  Travis Terwilligar Leaves Geeknet 

travist (@travist)

8/26/10 6:38 PM

Today I'm leaving Geeknet to pursue another opportunity. Good luck to my friends and former colleagues; I wish you all the best... 

Ross Turk (@rossturk)
8/16/10 7:57 PM
@quaid Almost everyone I worked with at SF has just been laid off. Very fond of them, want to make sure they find good spots. 

(August 11, 2010) [Update1] Two Langone 'Partners' and Geeknet (GKNT) Directors Resign. GKNT Receives Notice of Delisting...Shareholder(s) Allege Gross Negligence, Undue Influence, Conspiracy to Defraud, SEC Rule 10b-5 Violation(s)...Urge SEC Investigation. Story Developing

@groovecoder just saw a lot of my favorite co-workers laid-off today. Prayers for all. Uncertainty abounds. Hard day to be an optimist. #fb   7:08 AM Aug 10th via Twitterrific

(August 10, 2010) Breaking News...Three (more) Senior Officers (COO, CTO, CMO) terminated from Geeknet (GKNT) fka (LNUX)...story developing. Note: Jason Baird, hired as COO April 15, 2010, terminated (announced) August 10, 2010.

...leaving Geeknet (GKNT) shareholders with Matt Sweeney as Chief Revenue Officer whose sole background is in media and marketing services with ComputerWorld, InfoWorld (IDG) and Ziff-Davis who "...managed $30M+ in print/online sales for PC Magazine, the largest computer publication in the world with $60M in revenues....".  and this parting comment from Kenneth Langone [15:30/18:09] "...Matt Sweeney is very excited about the opportunities on the sales and marketing side...".  !?#!&@% [The] new smoking gun...leading indicator that Langone and partners, and with all due respect, do not have a clue?

Comment:  Matt Sweeney should arguably, at best, be CRO, Media, leaving an existing gaping hole of no CEO (GKNT) tapped from Amazon.com (AMZN) or Best Buy (BBY) viz-a-viz ThinkGeek's eCommerce dominance/growth...but it is clear something else is up and time is running out with SourceForge.net-ohloh.net-freshmeat.net-slashdot.org's viability/saleability not to mention the poisoning of company-wide morale...not good in a small high-tech company. 

 

*See (August 4 2010) "Why Github Must be Acquired in the Very Short-Term or Geeknet (GKNT)s SourceForge and Slashdot Family Needs to be Sold [now]".

 

References:

September 1, 2010) [Update4] Kenneth Langone Continues Buying Spree of Geeknet (GKNT) Shares. Day Nine...as R&D Cut, SourceForge gutted. What is Langone's Endgame?

(July 10, 2010) EMH and Full Disclosure.

 

(June 11, 2010) "...Geek.net announced -- internally -- a 25 percent staff cut this week, so things do not bode well for this once-powerful online publisher..." Source: DevXtra, Famed freshmeat Software Listing Site Bites the Dust,  Robin 'Roblimo' Miller on June 11, 2010 6:38 PM.

 

2 Comments – Post Your Own

#1) On September 08, 2010 at 5:24 PM, gnulaw (54.07) wrote:

Why is Langone not updating geek.net? It is a disaster. This is simply not right for a publicly-held company to pre-meditatedly convey that they are doing nothing and their stats are months old and innacurate. AMBER Alert for non-insider shareholders?

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#2) On October 30, 2010 at 9:45 AM, gnulaw (54.07) wrote:

Note: October 5 announcement re: Ohloh sale to Black Duck. See (October 16, 2010) [Update2] Geeknet (GKNT) Announces Sale of Ohloh.net to Black Duck Software. What's Next for SourceForge.net and Slashdot.org?

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