NeoMedia Technologies, Inc (NEOM)

[Poptech]

street: It is very common for a major investor to have one to three seats on the board. That doesn't equate to the investor running the board. The more seats, the more votes. However, NeoMedia now has 3, arguably 4, independent directors. If they wanted to run the board, or run NeoMedia, YA would have upped the number of appointments they have. They have every right to demand more board seats, but they don't.

I think it is a little narcissistic to think that YA, with its very small staff, is spending so much time "running" NeoMedia over the 100s of other companies they invest. More than likely, they are neglecting their role. I don't think it is possible for O-Leary to give NeoMedia more than a few hours a month with his schedule. That isn't enough time to take care of his executive duties, much less wonder what Laura has been up to. In all likelihood, YA has little more board governance than a paid observer. They certainly don't have the majority they need to set policy.

It is also notable that if you look at the agenda's of Chip, Iain and Laura, you can find a lack of continuity between the three leaders. As stewardship changed, so did the agenda. Chip is the outgoing salesguy (greatest IP in the world!) and empire builder. Iain, the socially uncomfortable IP tinkerer who gave up on sales. Then marketer Laura spins the businessplan on its head, ignores the IP, and declares NeoMedia a sales organization. This also suggests YA is not setting the tone, the CEO is doing so, and therefore doing their job.

I understand the need to think NeoMedia is an important part of YA's world. Both as an investor and especially as an employee. I think the reality is much more hapless.