Something about this deal just doesn’t sit right with me. Gore isn’t just taking piles of cash. According to the filing Gore, who is listed as executive chairman, and his CEO partner, lawyer-turned-entrepreneur Joel Hyatt, each loaned the company $1 million to get it started. They’ll get that back in the IPO. But the two guys also collect hefty salaries for a company that hasn’t shown a profit in three years—taking down $491,677 apiece last year in cash, plus bonuses of $550,000 each for, in Gore’s case, helping get the company new affiliate agreements, broadening exiting agreements, and putting together a management team. The two currently receive $600,000 a year in salary and are eligible for additional bonuses, according to the IPO filing.
By comparison, at the time of the Google IPO in 2004, its two founders were each taking home a total of $356,556 in salary and bonuses, while sitting on top of a company that had earned nearly $106 million the year before.
And the bit about the Class B share structure is pretty damming too.
I don’t have any problem with someone who has a successful IPO. I also think Current TV has an intriguing business model, as far as I undestand it. This is the kind of merging of the old and new media that I think we will see a lot more of.
But I can do without the moralizing sermons from someone who can pull off this kind of sweet deal.