Changes

For the past couple of years, I've dreamed of being discovered and capitalized by a wealthy venture investor who might see the potential of the [http://www.mywikibiz.com/Main_Page semantic web directory] that I now own with my sister.  Also for the past couple of years, I've [http://meta.wikimedia.org/wiki/Board_elections/2009/Results/en vied for a seat] on the Wikimedia Foundation board of trustees.  Last week, I discovered that if you're a venture capitalist, you might [http://www.nbcbayarea.com/news/tech/Wikipedia-Gets-Millions-Changes-Rules-jw-54830732.html buy yourself a seat] on the Wikimedia Foundation board.  I'm still stuck out here in the virtual cold, though, on both counts.

For the past couple of years, I've dreamed of being discovered and capitalized by a wealthy venture investor who might see the potential of the [http://www.mywikibiz.com/Main_Page semantic web directory] that I now own with my sister.  Also for the past couple of years, I've [http://meta.wikimedia.org/wiki/Board_elections/2009/Results/en vied for a seat] on the Wikimedia Foundation board of trustees.  Last week, I discovered that if you're a venture capitalist, you might [http://www.nbcbayarea.com/news/tech/Wikipedia-Gets-Millions-Changes-Rules-jw-54830732.html buy yourself a seat] on the Wikimedia Foundation board.  I'm still stuck out here in the virtual cold, though, on both counts.

'''Let's be fair'''

===Let's be fair===

Okay, let's be fair.  "Buying a seat" on a non-profit board may carry too strong a pejorative tone.  So, let's just stick to the facts.

Okay, let's be fair.  "Buying a seat" on a non-profit board may carry too strong a pejorative tone.  So, let's just stick to the facts.

 

[[Image:omidyar-and-branson.jpg|thumb|right|Pierre Omidyar and Richard Branson]]

 

<td><img src="http://akahele.org/wp-content/uploads/2009/08/omidyar-and-branson.jpg" alt="" /></td>

<td class="photocaption">Pierre Omidyar and Richard Branson</td>

Have you ever heard of '''Pierre Omidyar'''?  If you have, you're a tech junkie, I'll bet.  Mr. Omidyar (pronounced AH-mid-yar) is the founder and chair of the eBay online auction site.  Thanks to that vision back in 1995, Omidyar's personal fortune exceeds that of all but perhaps two hundred other souls on this planet.  You know you're rich when you hang with '''Richard Branson''' for some drinks.  Wikipedia describes Omidyar as a philanthropist who with his wife founded Omidyar Network in 2004.  Wikipedia has also stated  that Omidyar is "[http://en.wikipedia.org/w/index.php?title=Pierre_Omidyar&amp;diff=306203181&amp;oldid=304495270 the biggest douchebag]", one of the world's top "[http://en.wikipedia.org/w/index.php?title=Pierre_Omidyar&amp;diff=prev&amp;oldid=289928161 cheese lifting]" men, and for a brief spell in November last year went by the name "[http://en.wikipedia.org/w/index.php?title=Pierre_Omidyar&amp;diff=prev&amp;oldid=251351350 Omidyoodle]".

Have you ever heard of '''Pierre Omidyar'''?  If you have, you're a tech junkie, I'll bet.  Mr. Omidyar (pronounced AH-mid-yar) is the founder and chair of the eBay online auction site.  Thanks to that vision back in 1995, Omidyar's personal fortune exceeds that of all but perhaps two hundred other souls on this planet.  You know you're rich when you hang with '''Richard Branson''' for some drinks.  Wikipedia describes Omidyar as a philanthropist who with his wife founded Omidyar Network in 2004.  Wikipedia has also stated  that Omidyar is "[http://en.wikipedia.org/w/index.php?title=Pierre_Omidyar&amp;diff=306203181&amp;oldid=304495270 the biggest douchebag]", one of the world's top "[http://en.wikipedia.org/w/index.php?title=Pierre_Omidyar&amp;diff=prev&amp;oldid=289928161 cheese lifting]" men, and for a brief spell in November last year went by the name "[http://en.wikipedia.org/w/index.php?title=Pierre_Omidyar&amp;diff=prev&amp;oldid=251351350 Omidyoodle]".

</span>

</span>

'''What will $2 million buy?'''

===What will $2 million buy?===

So, on August 25, 2009, there was a [http://wikimediafoundation.org/wiki/Press_releases/Omidyar_Network_Grant_August_2009 big announcement] that the Omidyar Network was committing up to $2 million in grant money to the Wikimedia Foundation.  Almost in the same breath, it was mentioned that an Omidyar Network partner, '''Matt Halprin''', would be taking a seat on the WMF board of trustees.

So, on August 25, 2009, there was a [http://wikimediafoundation.org/wiki/Press_releases/Omidyar_Network_Grant_August_2009 big announcement] that the Omidyar Network was committing up to $2 million in grant money to the Wikimedia Foundation.  Almost in the same breath, it was mentioned that an Omidyar Network partner, '''Matt Halprin''', would be taking a seat on the WMF board of trustees.

And it's not just Halprin.  When '''Seesmic''' received $6 million from the Omidyar Network, Pierre Omidyar [http://www.bizjournals.com/sanfrancisco/stories/2008/06/16/daily41.html got himself a seat] on the board.  When '''Endeavor '''landed $10 million from the Omidyar empire, Omidyar's Matt Bannick [http://www.allbusiness.com/company-activities-management/company-structures/11473195-1.html took a seat] on the board.

And it's not just Halprin.  When '''Seesmic''' received $6 million from the Omidyar Network, Pierre Omidyar [http://www.bizjournals.com/sanfrancisco/stories/2008/06/16/daily41.html got himself a seat] on the board.  When '''Endeavor '''landed $10 million from the Omidyar empire, Omidyar's Matt Bannick [http://www.allbusiness.com/company-activities-management/company-structures/11473195-1.html took a seat] on the board.

'''What would I do?'''

===What would I do?===

If Omidyar approached me tomorrow and said they had $2 million (heck, let's just say $200,000) to help MyWikiBiz "make a difference" for every person, but that the investment was stipulated on Matt Halprin taking a seat next to my sister and me on the board of directors, would I take the money?  Not only would I take the money, I would hand-embroider the seat with Matt's initials in golden thread.

If Omidyar approached me tomorrow and said they had $2 million (heck, let's just say $200,000) to help MyWikiBiz "make a difference" for every person, but that the investment was stipulated on Matt Halprin taking a seat next to my sister and me on the board of directors, would I take the money?  Not only would I take the money, I would hand-embroider the seat with Matt's initials in golden thread.

So, how has the Wikimedia Foundation handled this obvious appearance of a seat having been bought?

So, how has the Wikimedia Foundation handled this obvious appearance of a seat having been bought?

'''The Germans are restless'''

===The Germans are restless===

Not the straightforward and direct way, which means apparently [http://en.wikipedia.org/w/index.php?title=User_talk:Jimbo_Wales&amp;oldid=311012973#WMF_Board not altogether well].  The German Wikipedia community is asking Wikipedia co-founder Jimmy Wales to clarify what just happened.  Wales admits that Foundation "communications could have been handled better", so he is quick to let Halprin do the talking, quoting Halprin's interview with the folks at the ''Wikipedia Weekly'' audio podcast.  Halprin [http://en.wikipedia.org/w/index.php?title=Wikipedia:WikipediaWeekly/Wikimania_2009/Halprin&amp;oldid=310590067 assures any skeptics]:

Not the straightforward and direct way, which means apparently [http://en.wikipedia.org/w/index.php?title=User_talk:Jimbo_Wales&amp;oldid=311012973#WMF_Board not altogether well].  The German Wikipedia community is asking Wikipedia co-founder Jimmy Wales to clarify what just happened.  Wales admits that Foundation "communications could have been handled better", so he is quick to let Halprin do the talking, quoting Halprin's interview with the folks at the ''Wikipedia Weekly'' audio podcast.  Halprin [http://en.wikipedia.org/w/index.php?title=Wikipedia:WikipediaWeekly/Wikimania_2009/Halprin&amp;oldid=310590067 assures any skeptics]:

I guess it's no surprise, though. When the Ruth and Frank Stanton Fund donated over $800,000 to the Wikimedia Foundation, one of the first things the money went toward was [http://blog.wikimedia.org/2009/01/21/a-note-on-the-wikipedia-usability-initiative/ rent for sub-leased office space] at Wikia, Inc. (Even though Wikia hadn't presented the lowest competitive bid, and they were the only bidder invited to [http://lists.wikimedia.org/pipermail/foundation-l/2009-January/049360.html re-submit their bid] to match the average of the other bids received.) If that's not a wired self-deal, I don't know what one is.

I guess it's no surprise, though. When the Ruth and Frank Stanton Fund donated over $800,000 to the Wikimedia Foundation, one of the first things the money went toward was [http://blog.wikimedia.org/2009/01/21/a-note-on-the-wikipedia-usability-initiative/ rent for sub-leased office space] at Wikia, Inc. (Even though Wikia hadn't presented the lowest competitive bid, and they were the only bidder invited to [http://lists.wikimedia.org/pipermail/foundation-l/2009-January/049360.html re-submit their bid] to match the average of the other bids received.) If that's not a wired self-deal, I don't know what one is.

'''Omidyar's perspective'''

===Omidyar's perspective===

I spoke with Sarah Steven, a manager in the Marketing and Communications department of Omidyar Network.  She emphasized that the two halves of the Network, the LLC and the 501(c)(3), are "one big office" and that they approach any investment first from the angle of "what is the social impact" of the target entity.  Then, only after they decide if a cause is worth pursuing, they worry about whether it will be a for-profit or a non-profit driven allocation, and that is what determines which entity will actually do the investing.

I spoke with Sarah Steven, a manager in the Marketing and Communications department of Omidyar Network.  She emphasized that the two halves of the Network, the LLC and the 501(c)(3), are "one big office" and that they approach any investment first from the angle of "what is the social impact" of the target entity.  Then, only after they decide if a cause is worth pursuing, they worry about whether it will be a for-profit or a non-profit driven allocation, and that is what determines which entity will actually do the investing.

No tie, folks.  Move along.  Nothing to see here.

No tie, folks.  Move along.  Nothing to see here.

<h4>Image credits:</h4>

 

    <li><span style="color: #000000;">Omidyar and Branson, [http://commons.wikimedia.org/wiki/File:Pierre_Omidyar_Richard_Branson.jpg <span class="comment">Attribution 2.0 Generic</span>].</span></li>

===Image credits===

*Omidyar and Branson, [http://commons.wikimedia.org/wiki/File:Pierre_Omidyar_Richard_Branson.jpg Attribution 2.0 Generic].

==Comments==

==Comments==

;Jon Awbrey       

 

:Greg,

:Just wanted to say “Thanks!” for yet another intelligent, well-researched piece on the complicities, er, complexities of the business world that boggle the brain of a simple-minded math-muncher like —

 

:Yours truly,

Jon Awbrey       

:Jon Awbrey

Greg,

;Dan T.       

 

:Their website is a .com rather than a .org, which implies that the for-profit arm dominates the nonprofit one.

Just wanted to say “Thanks!” for yet another intelligent, well-researched piece on the complicities, er, complexities of the business world that boggle the brain of a simple-minded math-muncher like —

;Anonymous       

 

:There certainly is more to this deal than meets the eyes–and don’t expect anyone in the Foundation to open their mouths. Little birds have told me more, but I’d rather not disclose exactly what right now.

Yours truly,

;Somey       

 

:Pierre Omidyar’s eBay shares are worth billions, so $2M isn’t a huge expense for him, but for the Wikimedia Foundation it’s at least another year or two of “safety” from their having to carry advertising on Wikipedia in order to stay afloat. Various people (including Jimbo Wales) have suggested that it would be “pointless” to buy a seat on the board of a non-profit, non-revenue-producing organization. But when you’re the dominant force in an important market (like eBay is with small-time online retail and private auctions), helping to prevent Wikipedia from becoming a potentially major advertising venue for your competitors is probably worth at least that much.

Jon Awbrey

:Wikia, OTOH, already takes advertising, so for them there must be some other reason – possibly having something to do with collectible lunchboxes.

 

;Gregory Kohs       

Dan T.       

:And it would appear that the Austrian faction is also cognizant of the underlying basis for Omidyar Network’s existence.

Their website is a .com rather than a .org, which implies that the for-profit arm dominates the nonprofit one.

;Gregory Kohs       

 

:Interesting to note that this blog article and its author were mentioned by The Wikipedia Signpost of September 14, 2009.  You’d think that one of the editors of that article would have contacted us for comment, but no such luck.

Anonymous       

;Prashanth       

There certainly is more to this deal than meets the eyes–and don’t expect anyone in the Foundation to open their mouths. Little birds have told me more, but I’d rather not disclose exactly what right now.

:Hmm…well researched blog. I appreciate it. Wandered here from a discussion somewhere in the hinterland of wikipedia’s bureaucratic red tape.

 

:One would always like to imagine that WP will not succumb to the same ills that plague most organisations committed to public good, but depending on private money. I was sure, it was bound to happen….naivete to expect otw.

Somey       

:That said, it is very disheartening for me as a WP editor of many years to learn this. Hmpf…

Pierre Omidyar’s eBay shares are worth billions, so $2M isn’t a huge expense for him, but for the Wikimedia Foundation it’s at least another year or two of “safety” from their having to carry advertising on Wikipedia in order to stay afloat. Various people (including Jimbo Wales) have suggested that it would be “pointless” to buy a seat on the board of a non-profit, non-revenue-producing organization. But when you’re the dominant force in an important market (like eBay is with small-time online retail and private auctions), helping to prevent Wikipedia from becoming a potentially major advertising venue for your competitors is probably worth at least that much.

;hilarious       

 

:I love two things about this: first, that it is somehow evil for a major donor to place someone on the board of trustees of a charity (no, actually, that’s perfectly normal). Second, that as soon as it’s published the Legion of the Banned happen along to sing your praises. Funny stuff!

Wikia, OTOH, already takes advertising, so for them there must be some other reason – possibly having something to do with collectible lunchboxes.

;Gregory Kohs       

 

:Nobody said it was “evil”.  I’m just asking them to label it for what it is — a seat was purchased on the board of trustees.  End of story.

Gregory Kohs       

:That you’d find “hilarious” a desire to have a purportedly transparent organization be more honest about what is plain to the eye may say more about you than about me or any legion of banned Wikipedia editors.

And it would appear that the Austrian faction is also cognizant of the underlying basis for Omidyar Network’s existence.

 

Gregory Kohs       

Interesting to note that this blog article and its author were mentioned by The Wikipedia Signpost of September 14, 2009.  You’d think that one of the editors of that article would have contacted us for comment, but no such luck.

 

Prashanth       

Hmm…well researched blog. I appreciate it. Wandered here from a discussion somewhere in the hinterland of wikipedia’s bureaucratic red tape.

 

One would always like to imagine that WP will not succumb to the same ills that plague most organisations committed to public good, but depending on private money. I was sure, it was bound to happen….naivete to expect otw.

 

That said, it is very disheartening for me as a WP editor of many years to learn this. Hmpf…

 

hilarious       

I love two things about this: first, that it is somehow evil for a major donor to place someone on the board of trustees of a charity (no, actually, that’s perfectly normal). Second, that as soon as it’s published the Legion of the Banned happen along to sing your praises. Funny stuff!

 

Gregory Kohs       

Nobody said it was “evil”.  I’m just asking them to label it for what it is — a seat was purchased on the board of trustees.  End of story.

 

That you’d find “hilarious” a desire to have a purportedly transparent organization be more honest about what is plain to the eye may say more about you than about me or any legion of banned Wikipedia editors.