Feeds

Amazon's Bezos investigated by Feds

Another stock-chucking coincidence

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

The US Securities and Exchange Commission (SEC) is casting a jaundiced eye on stock sales executed by Amazon CEO Jeff Bezos shortly after receiving advance copies of a negative financial report, the New York Times reported Friday.

However, the Commission will neither confirm nor deny that an investigation is underway, according to follow-up reports by the wire services.

Amazon spokesman Bill Curry said that if there is an investigation, the company sure wasn't aware of it. "If there proves to be one we're certainly going to be happy to help in any way we can," he is quoted as saying.

Bezos filed notice on 2 and 5 February stating his intent to sell 800,000 shares of Amazon stock worth approximately $12 million. The company has confirmed that the sale was consummated.

The sticky bit comes from a report by financial shamanists Lehman Brothers, expressing doubts that the company has enough money to operate for the rest of the year, which Amazon executives received prior to publication and of course prior to Bezos' sale.

Curry confirmed that Amazon execs got advance copies of the report, but rather than panic and start chucking shares, attempted instead to convince Lehman Brothers that they'd got things wrong.

Playing fast an loose with financial information is nothing new at Amazon. Indeed, company execs have repeatedly ducked requests for hard data to back up their perennially rosy assessments of the company's prospects.

In a Sunday article, New York Times columnist Gretchen Morgenson decries the "blather masquerading as financial information" issuing from Amazon's 'investor relations' flack division, which she compares to a Tower of Babel.

Her take on the attempt to persuade Lehman Brothers that their report was less than accurate is refreshingly cynical. "John Doerr, a prominent venture capitalist and Amazon director, called Lehman's chairman to try to suppress [the] report before it came out," she writes.

Seems the NYT is finally catching on to the hype. One would almost think they've begun reading The Register. ®

Related Link

The Morgenson article

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.