Breaking News
0

StockBeat: Overstock Rallies as CEO Quits Days After Delivering Confession

Stock MarketsAug 22, 2019 03:42PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - Chief executives and founders fall on their swords for any number of reasons, but the series of events that led Overstock.com (NASDAQ:OSTK) founder and chief executive Patrick Byrne to quit on Thursday may well be talked about for some time.

Byrne resigned from the e-commerce company, just a week after conceding in an interview with Fox News that he "assisted in what are now known as the Clinton investigation and the Russian investigation."

Byrne’s resignation set off a big rally in shares in Overstock.com (NASDAQ:OSTK). The cloud of conspiracy hanging over Bryne would likely prove a distraction for the company going forward. Shares were up more than 10% Thursday afternoon. But it had a wild ride just getting there.

Explaining his decision to quit in a letter to investors, Byrne said coming forward was "hardly my first choice," but felt that his presence could "affect and complicate all manner of business relationships, from insurability to strategic discussions regarding our retail business.”

He had admitted last week that he had been romantically involved with Maria Butina, the Russian operative who infiltrated American politics and is now serving an 18-month prison sentence for being an unregistered foreign operative. That news sent Overstock.com (NASDAQ:OSTK) Overstock shares plunging from the Aug. 9 close of $25.19 to as low as $15.46 over the next three days.

And he said he conducted his affair while informing on it to the FBI.

Byrne, who holds degrees from Dartmouth, Cambridge and Stanford, has been controversial in the past, deriding naked short sellers and others as he built up Overstock and, at the same time, becoming passionate about blockchains and crypto-currencies. Overstock began as an online retailer of surplus and returned merchandise. It does that and sells new merchandise as well.

Overstock's shares are actually up nearly 57% this year, but that was after plunging in 2018 from as high as $89 in the early part of the year.

Byrne's parting words also included some insight on the way forward for the company.

“The best thing to do for shareholder interest is to use cash flow to mature our blockchain keiretsu firms to fruition while we keep running our Retail business focusing on refining it as an exquisite gem of a technology platform, rather than again trying to go head-to-head with any firm in the process of dropping billions of dollars in losses,” Byrne said.

Overstock said it would appoint Jonathan Johnson, an Overstock board member and president of Overstock’s blockchain subsidiary Medici Ventures, as interim CEO.

The e-commerce company also said Kamelia Aryafar, the chief algorithms officer, would become executive vice president of Overstock's retail business.

StockBeat: Overstock Rallies as CEO Quits Days After Delivering Confession
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
PMSF Small
PMSF Small Aug 22, 2019 8:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A little too much CEO testosterone
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email