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Summary:

Activist investor Carl Icahn, who poured about $100 million into Motricity last year, said that he now questions the decision following the…

Activist investor Carl Icahn, who poured about $100 million into Motricity last year, said that he now questions the decision following the news that Motricity will layoff 250 of its 600 employees and move to Washington state to be closer to its InfoSpace (NSDQ: INSP) acquisition, according to LocalTechWire.com.

Icahn told Private Equity Hub

By Tricia Duryee

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  1. Lookout below Monday, March 10, 2008

    Wow. Is it me, or are the wheels falling of this thing in a hurry. Icahn's comment that his son "talked him into it" and "I am not sure it was the right decision" is stunning.

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  2. ExMoWageSlave Tuesday, March 11, 2008

    I want a dad who'll toss me $100 million on a whim. I won't even screw up peoples' jobs with it.

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  3. Oh Uncle Carl, if you had only done your due diligence, you wouldn't be in this mess. Sonny make a boo-boo.

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  4. He talks about Motricity at 18:04 in video #1.

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  5. C'mon. You invest that much money and don't look into whether or not its a good investment. Carl "I con" I don't believe you. Must be trying to save face with all your country club buddies.

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  6. Truthshouldbeknown Wednesday, March 12, 2008

    I would be questioning my investment as well…

    This is an interesting story:

    http://www.wral.com/business/local_tech_wire/venture/story/2560517/

    Motricity answering critics about the management there. Heh, I love how they skirted around the issues on this one. As for the first question asked, Did Ryan receive an interest free loan from Motricity for his home? Nope, but it was very low interest, and by all accounts should be considered interest free.

    Did Ryan utilize Motricity Staff for running personal errands? They said only when he is working 18 hour days on “on occassion”. HA!! Ryan hadn’t worked an 18 hour day in his life, and on top of that, he not only used people for running errands, such as getting his clothes and other things, he also used the IT staff to take care of his personal computers, install electronics in his house and take care of his friends computers like Nathan and the like. This happened constantly and employees who didn’t agree to perform such work were threatened with firing. That’s the truth, period.

    The person answering the question about Ryan professing his faith in meetings obviously wasn’t there at the time that it DID happen. It wasn’t for long, but it happened.

    Ryan and Nathan would never go anywhere without a limo. They couldn’t take a taxi like the rest of us and if we had spent a cent more than what policy allowed, they would have our butts for it. They came in and changed the place from a fun place to work to a hell hole and it didn’t take them long.

    Anyone who didn’t agree with them was threatened with being fired and they completely abused their power in terms of getting personal gain from employees. It’s sad, and I can’t believe the answers I saw on WRAL today. I don't know who this PR person is, but they obviously have no clue, or are actively trying to hide the truth.

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  7. bitchers and moaners Wednesday, March 12, 2008

    You people should stop bitching and moaning about Ryan's perks… he's the CEO for Christ's sake and most of you are just jealous. You want those perks too? Then earn them. Stop worrying about what Ryan drives to work… or loans for his house… or who picks up his dry cleaning. What a bunch of babies you sound like critizing him for this.

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  8. Truthshouldbeknown – you hit the nail on the head. I know…I was there. Any guess on how much of the loan and interest has been repaid?

    bitchers and moaners – what planet are you from? or are you one of the prom queens?

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  9. doing the scooby doo Thursday, March 13, 2008

    Did I really read that he threw a birthday party…for himself???? Didn't I see that on an episode of 'The Office'?

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  10. Icahn's comments Thursday, March 13, 2008

    Among all the hulabaloo around Icahn's comments on regretting the investment but Motricity having good "technology", regardless of recent clarifications and restatements, notice that Icahn pointedly did NOT say that Motricity had good management, EVER. And, by the way, that's what Carl KNOWS. He doesn't know technology, and admits as much. To "bitchers and moaners", I'm not sure it's the employees complaining as much as it is investors, who question why their money is being spent on china, limos, personal electronics assistance, and low-interest (read 0.5%) loans on overpriced houses when it should be invested in profitable growth. The answer is probably because management sees that no actual profitable growth is possible, so they're spending and having fun as long as the investors' money holds out, but who knows?

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