David Politis

On the surface, the headline from today’s Dell Inc. news release seems fairly straightforward: “Michael Dell Assumes Duties as Chief Executive Officer of Dell Inc.”

And yet as one begins to dig a bit deeper into the nuances of the release, I believe that clues begin to emerge as to what likely happened at Dell in the past 24-48 hours.

First some context.

According to Reuters, Kevin Rollins joined Dell in 1996 as senior vice president, corporate strategy following a stint with management consulting firm Bain Inc. After a variety of escalating promotions, Rollins was tapped as CEO of Dell in July 2004.

Note the praise Michael Dell heaps on Rollins praise in the following quote taken directly from the news release announcing Rollins’ promotion to Dell CEO on July 16, 2004:

“There is no single person who deserves more recognition for our great accomplishments than Kevin. His becoming CEO is as much about recognizing what he’s already done as it is about our confidence in his future and Dell’s.”

My how the worm has turned. Now, let’s look at today’s news release.

One, the lead paragraph explains that Mr. Dell will take over as CEO “effective immediately” replacing Kevin Rollins. Notice that the release is not about Rollins resigning; it’s about Dell becoming CEO. Interesting distinction.

The next several paragraphs are all about Michael Dell and how wonderful he is, which is fine.

But note that it’s not until the fifth paragraph that we learn that Rollins has even resigned from Dell at all, both as CEO and from his position on the Dell board of directors. Here again, note the use of the term “effective immediately.”

I point out this phrase because my experience in tracking news announcements during the past 20 years suggests that any time a release says an executive is stepping down “effective immediately” I am quite confident that the decision to resign was not made voluntarily.

Note also in the sixth paragraph that Michael Dell says that “Rollins has been a great business partner and friend,” which sounds perfectly fine, even laudable on the surface to say nice things about a former business partner. But note that the verb used is in the past tense — “has been” instead of “is.”

Obviously I understand that Rollins is no longer Dell’s business partner, but couldn’t this sentence have been written ”Rollins is a great friend and has been a great business partner” just as easily? Maybe it doesn’t roll off the tongue as well, but for something this important, I’m confident the release was written in this manner on purpose.

Finally, there are two more things in the middle sentence of the sixth paragraph that I think bear further examination: “He has made significant contributions to our business over the past ten years.”

Did you see the classic PR mistakes made in this sentence? Specifically, any public/investor relations pro or journalist worth her salt knows that the word “over” is used in PR- and news-writing to signify a place of position and not a period of time. (For example, “He held the bat over his head.”)

Additionally, with minor exceptions (and this isn’t one of them), numbers 10 and higher are always shown as a number and not spelled out in PR- and news-writing, while the numbers zero through nine are always spelled out.

Hence, the sentence should have been written “He has made significant contributions to our business during the past 10 years.”

Taken in concert, I believe all of these points suggest that this release was pulled together very quickly (my guess is within a couple of hours) without the input of PR professionals.

I also believe it was probably written overnight (probably by Dell’s legal counsel) with vetting by Mr. Dell himself and the Dell board, then prepped for distribution and publishing on the Dell Website and shoved out the door.

If I take these suppositions a step further, it would not surprise me to learn the forced decision to resign was presented to Rollins in a Dell board meeting last night.

Do I know this for sure? Of course not.

But almost every news release leaves clues as to what really happened behind the scenes, including today’s release from Dell Inc.

(For more on this topic, check out my other blog post at UtahTechWatch.com.)

Salt Lake City-based ContentWatch announced yesterday afternoon that it has acquired Net Nanny from San Francisco-based LookSmart (NASDAQ: LOOK).

Historically perceived as a market (if not a technology) leader in the Internet filtration/parental controls marketplace, Net Nanny has become something of an orphaned/abandoned product within LookSmart as management has decided to focus the company on the targeted/specialized search engine marketplace.

In fact, a quick review of the LookSmart news release archives shows that the last time the term Net Nanny appeared in a LookSmart news release headline was September 22, 2004 — more than 27 months ago!

Additionally, it appears that LookSmart has not generated any software licensing revenue since fiscal 2003 (ended 12/31) when the company generated $15.3 million in software licensing, or 11 percent of its overall revenue. (See p. 26 of LookSmart’s 2005 annual report.)

So, although the official ContentWatch/LookSmart news release announcing the acquisition does not disclose the price paid by ContentWatch for Net Nanny, I suspect CEO Sunderlage and company got a steal of a price. In fact, it wouldn’t surprise me to learn that ContentWatch didn’t pay a dime for Net Nanny (but that’s just a wild guess on my part).

Regardless of the price, however, it should be a good addition to the ContentWatch stable of product offerings.

(DISCLOSURE: Politis Communications provided public relations services to ContentWatch on a project basis in 2005.)

Early this morning, University Venture Fund announced that it has tapped 10 MBA students from the Wharton School to assist the UVF in running its $18 million private equity fund.

Founded in 2001 at the University of Utah’s David Eccles School of Business as an entrepreneurial tool for UofU students, the UVF went on to raise $18MM from limited partners, making it both the first and largest student-run private equity firm in the United States.

Following today’s announcement, the Wharton connection brings to the self-sustaining UVF team 10 Wharton students and four faculty advisors, including a Fulbright scholar, the ex-CTO of NASA, a student with an M.D. from John Hopkins, as well as students with work experience from Microsoft, Google and Goldman Sachs. 

Among the first 10 companies UVF invested in, at least one — Omniture (NASDAQ: OMTR) – has experienced a financial exit, specifically through an initial public offering.

Not only is it hard to imagine that 2006 has come and gone, but it’s also mind-bending to realize that CES starts this coming Monday.

With the death of COMDEX (the COMputer Dealer EXposition) a few years back, the annual Consumer Electronics Show has now become the largest technology tradeshow in the United States, if not the world.

Slated this year for January 8-11 in Las Vegas, CES will attract a truly worldwide audience of manufacturers, distributors, engineers, marketers, retailers, gawkers and more to the annual geek fest in glitter gulch. Oh yes, and journalists galore — probably 5,000+ this year coming from places as widespread and diverse as Salt Lake City and Singapore.

Based upon last year’s attendance figures, I will not be surprised to see total attendance surpass 200,000 unique visitors to CES this year.

As for me, I’m headed down to slot-machine city on Sunday with several members of the Politis Communications crew and major media events slated for both Sunday and Monday nights.

Look for more on CES between now and mid-January.

Salt Lake City-based Lipocine just landed a big time hitter in the financial marketplace: Robert Merrell.

As I understand it, Bob has just returned to Utah after serving a three-year stint as a mission president for the LDS Church (the Church of Jesus Christ of Latter-day Saints).

Professionally, Bob was the financial leader at NPS Pharmaceuticals, formerly Natural Product Sciences, who lead the company’s monetary charge through multiple private and public financiangs, incuding the NPS Initial Public Offering (NASDAQ: NPSP) and three subsequent follow-on public offerings. All told, Bob helped NPS raise more than $300 million.

Between his stint at NPS and his LDS mission, Bob also served as a Vice President with Myriad Genetics Laboratories.

Bob was great to work with as a client while he was at NPS, and I wish him and the entire Lipocine team “Buena Suerte.”

P.S. Lipocine is a pretty interesting drug delivery company that is looking to lipids — organic compounds that do not dissolve in water but that are soluble in solvents — as vehicles for delivering complex molecular compounds as once-a-day, orally delivered pharmaceuticals.