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| '''Patrick M. Byrne''' is ] and ] of ]. He is most known for his recent allegations that ] (whom he has referred to as the "dark lord of the Sith") have been targeting the stock of Overstock.com. |
'''Patrick M. Byrne''' is ] and ] of ]. He is most known for his recent allegations that ] (whom he has referred to as the "dark lord of the Sith") have been targeting the stock of Overstock.com. | ||
| ==Background== | ==Background== | ||
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| Byrne held a conference call which was widely publicized because of its many allegations, including his contention that a "conspiracy" was targeting his company, and his comparing his company's adversaries to the "dark lord of the Sith". He repeated the conspiracy allegations several times during 2006, contending the markets were "broken." | Byrne held a conference call which was widely publicized because of its many allegations, including his contention that a "conspiracy" was targeting his company, and his comparing his company's adversaries to the "dark lord of the Sith". He repeated the conspiracy allegations several times during 2006, contending the markets were "broken." | ||
| Byrne subsequently commenced what he described as a "]" against naked short selling and short-sellers who he described as targeting his company. He filed suit against a ], ], which he claimed colluded with a ] |
Byrne subsequently commenced what he described as a "]" against naked short selling and short-sellers who he described as targeting his company. He filed suit against a ], ], which he claimed colluded with a ] and the press to drive down the price of his stock. The defendants vigorously denied the charges. He also waged a public campaign against the practice, in the media and ]. | ||
| Byrne's campaign against naked short selling has been widely criticized, with New York Times columnist Joseph Nocera saying: "Except for a few fellow-traveling Web sites, where Mr. Byrne is viewed as a heroic figure, most people who understand the issue or have looked into it think it's pretty bogus." | Byrne's campaign against naked short selling has been widely criticized, with New York Times columnist Joseph Nocera saying: "Except for a few fellow-traveling Web sites, where Mr. Byrne is viewed as a heroic figure, most people who understand the issue or have looked into it think it's pretty bogus." | ||
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| ==Education lobbying== | ==Education lobbying== | ||
| Byrne is head of an education lobbying organization called ]. The organization's primary goal is what they call the "65% solution", which would require 65% of all education spending to be spent on what is considered "in the classroom education". There is a controversy regarding how this category is defined (such as the inclusion of athletics programs and exclusion of libraries and librarians). The plan has been criticized by the ] and other groups. The NEA cites a study by ], which indicated "no significant positive correlation between the percentage of funds that districts spend on instruction and the percentage of students who score proficient or higher on state reading and math tests." According to First Class Education, 3 states have implemented their plan so far— ], ], and ] as of July 2006. | Byrne is head of an education lobbying organization called ]. The organization's primary goal is what they call the "65% solution", which would require 65% of all education spending to be spent on what is considered "in the classroom education". There is a controversy regarding how this category is defined (such as the inclusion of athletics programs and exclusion of libraries and librarians). The plan has been criticized by the ] and other groups. The NEA cites a study by ], which indicated "no significant positive correlation between the percentage of funds that districts spend on instruction and the percentage of students who score proficient or higher on state reading and math tests." According to First Class Education, 3 states have implemented their plan so far— ], ], and ] as of July 2006. | ||
| ==World Stock== | |||
| Patrick Byrne is also known for starting WorldStock, an initiative that states "Our goal in Worldstock is not to make money, but to create tens of thousands (and someday millions) of jobs in the poorest regions of the world, while bringing customers unique products of which they can be proud – hand-crafted clothing, jewelry, ceramics, furniture, and much more." | |||
| == Personal life == | == Personal life == | ||
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Revision as of 03:04, 21 August 2006
Patrick M. Byrne is President and CEO of Overstock.com. He is most known for his recent allegations that naked short sellers (whom he has referred to as the "dark lord of the Sith") have been targeting the stock of Overstock.com.
Background
Patrick Byrne received a bachelor’s degree from Dartmouth College (Asian Studies & Philosophy), a master’s degree in philosophy from Cambridge University as a Marshall scholar, and a doctorate in philosophy from Stanford University.
Byrne served as Chairman, President and CEO of Centricut, LLC, a manufacturer of industrial torches, then held the same three positions at Fechheimer Brothers, Inc., a Berkshire Hathaway company manufacturing police, firefighter, and military uniforms. Currently Byrne is CEO and President of Utah-based internet retailer Overstock.com.
'Jihad' against naked shorting
In 2005, Byrne contended that a market-wide conspiracy to commit naked short selling was targeting Overstock.com. Short selling is a way for an investor to bet that the share price of a company will decline, namely by borrowing shares from someone else, selling them, and then when the price is lower buying them back to return to the person one borrowed shares from. In naked short selling, the shares are not borrowed beforehand. The practice is controversial, and its prevalence is open to dispute.
Byrne held a conference call which was widely publicized because of its many allegations, including his contention that a "conspiracy" was targeting his company, and his comparing his company's adversaries to the "dark lord of the Sith". He repeated the conspiracy allegations several times during 2006, contending the markets were "broken."
Byrne subsequently commenced what he described as a "jihad" against naked short selling and short-sellers who he described as targeting his company. He filed suit against a hedge fund, Rocker Partners, which he claimed colluded with a securities research firm and the press to drive down the price of his stock. The defendants vigorously denied the charges. He also waged a public campaign against the practice, in the media and Internet.
Byrne's campaign against naked short selling has been widely criticized, with New York Times columnist Joseph Nocera saying: "Except for a few fellow-traveling Web sites, where Mr. Byrne is viewed as a heroic figure, most people who understand the issue or have looked into it think it's pretty bogus."
Besides controversy over what many allege to be unstable behaviour of Byrne, there is a more general debate about whether a CEO should be concerned about naked short selling of the stock of his company. The reason is because if the CEO believes in the strength and future prospects of his company, naked short selling would cause the price of the company to temporarily fall, allowing the CEO to buy more of the valuable company at cheaper prices.
In March 2006, the chairman of Overstock.com, John Byrne -- Patrick Byrne's father -- said that he was thinking of stepping down in disagreement over his son's "jihad" over naked short-selling. This development contributed to the controversy over Byrne's behavior. In April 2006, John Byrne stepped down to become vice-chairman, and was replaced by Patrick Byrne.
Media attention
Since Byrne launched Overstock.com in 1999, he and his company have garnered attention from numerous national media outlets. Among them are the Wall Street Journal, ABC News with Peter Jennings, Fortune, CBS Marketwatch, and Business Week, among others, and is a frequent guest on Bloomberg TV, CNBC, and Fox News shows (such as Cavuto and Kudlow & Cramer). In 2002, Byrne was named to Business Week’s list of the 25 most influential people in e-Business: the magazine cited survival strength and vision as qualities that qualified Byrne for the list. In 2003 Ernst & Young awarded Byrne an “Entrepreneur of the Year” award in the category of Lifetime Achievement.
More recently, however, he has received critical treatment in the press, largely because of his allegations conerning an alleged naked short-selling conspiracy. He is also criticized for his often sharp attacks on stock research analysts critical of his company, his lawsuit, and his sometimes personal attacks on individual members of the press.
Byrne has asserted that he is under attacks from "dishonest" members of the press, and has singled out journalists at Marketwatch.com, Dow Jones News Service and the New York Post. He has alleged that one reporter is "crooked," and that another receives payments from hedge funds via an ATM.
Byrne's allegations, which his critics deride as bizarre and patently false, have drawn sharp criticism from media outlets as diverse as the Wall Street Journal, New York Times, Fortune and the New York Post.
In a column in the New York Times in March 2006, journalist Joseph Nocera condemned Byrne's attacks on analysts and the press as a "campaign of menace."
Education lobbying
Byrne is head of an education lobbying organization called First Class Education. The organization's primary goal is what they call the "65% solution", which would require 65% of all education spending to be spent on what is considered "in the classroom education". There is a controversy regarding how this category is defined (such as the inclusion of athletics programs and exclusion of libraries and librarians). The plan has been criticized by the National Education Association and other groups. The NEA cites a study by Standard and Poor's, which indicated "no significant positive correlation between the percentage of funds that districts spend on instruction and the percentage of students who score proficient or higher on state reading and math tests." According to First Class Education, 3 states have implemented their plan so far— Colorado, Missouri, and Oklahoma as of July 2006.
Personal life
Byrne has a black belt in tae kwon do and once pursued a career in professional boxing. He is a cancer survivor, and has ridden a bicycle across the country to raise awareness and money for cancer research at the Dana Farber Cancer Institute.
External links
- Overstock.com
- Byrne speech on struggle with cancer
- Fortune Magazine article on short-selling crusade
- New York Times article on Byrne's confrontations with analysts and the media
- First Class Education website
- "The bizarre world of Patrick Byrne's Overstock" - The Register