I don't know how ebay is organized. But to go from the one reponsible for Strategy and M&A to advertising (it wasn't even global advertising, just the U.S.) seems like a 2-3 layer demotion.
Since he left ebay for a strategy position at Move, it would seem like his change from a strategy position at ebay wasn't his choice.
It's simple enough. They've had the cash for several years - but not used it. Why raise $100 million if you have no real plans for it? They already had a cash cushion - if that was the issue. That cash after all will eventually be converted to shares, bringing dilution. Swapping it for shares on a buy-back, in turn, only marginally affects the over-all dilution after you subtract the shares issued for the cash from the shares purchased on the buy-back. It looks good on paper, but you certainly don't raise such capital purely for the interest it earns.
Not to burst your bubble about this guy but he WAS doing strategy and mergers and acquisitions at ebay but then moved to be in charge of advertising. Is that a step up?
From a speaker's bio:
"Immediately prior to joining Move, he was at eBay with global responsibility for Advertising. During his six year tenure at eBay, Dr Smith was initially responsible for Corporate Strategy and M&A and subsequently for eBay's US Internet Marketing."
Lorna Borenstein's first hire was a highly respected and credentialed strategy guy from Ebay.
Here's his bio:
Dr. Smith has been appointed as Executive Vice President of Corporate Development and Strategic Partnerships of Move Inc. Prior to joining Move, Dr. Smith served in several key executive positions at eBay from 2001 to 2007 that encompassed the full range of his new responsibilities at Move. As vice president of corporate development at eBay he managed several key deals including the acquisition of Paypal. As senior director of internet marketing at eBay, Dr. Smith drove more than 100% growth in user acquisition and as senior director of advertising and strategic partnerships he delivered strong P&L performance. Prior to joining eBay, Dr. Smith served as chief executive officer of LiquidWit in San Francisco, chief executive officer of eSolutions of Auckland, New Zealand, executive vice president of strategy at Telecom New Zealand, and vice president of mergers and acquisitions at Credit Suisse First Boston. Smith received a B.A. in Engineering and a Ph.D. in Electrical and Electronic Engineering from University of Canterbury, New Zealand.
It's pretty sad. I remember not too long ago the guy saying he was loading up at around $3.50. I hope he got out without too much damage.
It's going to bottom out sometime and we'll start seeing the posts that claim they bought at the low. But that won't happen unitl it starts going up again. So let me be the first...
"I bought 10,000 shares at (insert low price here). Easy Money."