Ellen Hancock, CEO of the mega-Web-hosting firm Exodus, has officially slipped out the back, Jack. Reporters livened up this otherwise dull executive shuffle by kicking Exodus when it's down. Since "down" includes job cuts and a stock price of 74 cents, we can't say we blame them.
Bloomberg and the Wall Street Journal pointed out that Hancock and her replacement weren't "available" for interviews, so scribes were stuck with a seven-sentence press release and a vague-talking spokeswoman. No one could exactly agree on the tone of the resignation. Hancock "unexpectedly" quit, said the AP and the San Jose Mercury News, while the Journal said "the move didn't surprise Wall Street."
Everyone said Hancock resigned, but CBS MarketWatch said she "was pressured to step down." (Hey, that wasn't in the press release!) An analyst and Bloomberg source agreed that "Hancock was probably fired." It wouldn't be the first time: CBS MarketWatch said Steve Jobs kicked her out of Apple in 1997.
Lacking fresh sources, many dredged up Exodus' unpleasant recent history. Its stock is this year's last-place performer in the Nasdaq 100, said Bloomberg. That's 99 percent off from its top price, or 98 percent if you're reading the Associated Press - either way, we wonder when Exodus and its sub-$1 shares will pull up a chair at the Delisting Diner. Exodus also has a "staggering $3 billion in debt," said the AP. Its second quarter was lousy. Executives, board members and regular employees have been cleaning out their desks. Exodus has acknowledged that it would be open to a merger or takeover, but no one has come forward with any cash. Hmm, why not?
It's not hard to figure out where Hancock went wrong. She originally signed large businesses as Exodus clients, and the company did well. Then, like the rest of us, she put too much faith in Internet startups. The dot-coms went bust, Exodus lost its contracts, Hancock took the heat. But maybe she didn't know the heat was coming. Just last month she told News.com, "We have an excellent team that can take us through these next steps, and I feel very good about the team." Looks like the team didn't feel as good about her.
Hancock Exits Exodus
TheStandard.com
Exodus's Chairman Hancock Resigns; Board Names Krause as Her Successor
The Wall Street Journal
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Top Changes At Exodus
InternetNews.com
Hancock quits as CEO of troubled Exodus
SiliconValley.com
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Bloomberg
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Yahoo
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CNET.com
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CBS MarketWatch
