Al Gore's Oil-Fueled Al-Jazeera Deal Follows A String Of Green Energy Fiascos
Al Gore, chairman and co-founder of Current TV, and Joel Hyatt, executive vice chairman and co-founder of Current TV. (Image credit: via @daylife)
Al-Jazeera, the anti-Israeli network funded by
Qatar,
closed a deal with the struggling left-wing cable station
Current TV founded by Al Gore which gives the them access to 40 million U.S. homes. Unfortunately for Mr. Gore, the purchase wasnt consummated until January 2
nd, depriving him of success in his efforts to beat the clock on an estimated $100 million payback before higher tax rates kicked in on January 1.
That number of household connections would have been 12.5 million higher had it not been for an immediate decision by
Time Warner Cable not to show
Al-Jazeera programing on its system. The company issued a statement that Our agreement with
Current has been terminated and will no longer be carrying the service. We are removing the service as quickly as possible.
Gore, who has previously purported to be a supporter of
Israel, has defended the arrangement, claiming that
Al-Jazeeras mission was similar to that of
Current TV, giving voice to those who are not typically heard, to speak truth to power, to provide independent and diverse points of view and to tell the stories that no one else is telling
the inconvenient truth, no doubt. These diverse points of view have been observed to present a pro-Islamist bias. In 2011,
one of its journalists was arrested in Israel on suspicion of being an agent of the Palestinian group Hamas. Dave Marash, a former
Nightline reporter who worked for
Al-Jazeera in
Washington, said that he left the network in 2008 because he sensed an anti-American bias there.
Al Gore and some investment partners originally purchased the Canadian news network
News World International (NWI) in 2004 for $70 million and renamed it
Current TV. Those partners included former Goldman Sachs senior director and Democratic Finance Committee chair Philip Murphy, Senator Diane Feinsteins husband Richard Blum, Sun Microsystems co-founder Bill Joy, and former AOL
Time Warner CEO Bill Pittman. That same year, he co-founded Generation Investment Management LLP (GIM) with three partners; former chief of Goldman Sachs Asset Management David Blood and two others from that firm. GIM is a London-based firm that invests money from institutions and wealthy investors that are going green.
GIM and Goldman Sachs (GSAM) were also big investors in the Chicago Climate Exchange (CCX) which has worked to become the New York Stock Exchange for carbon offset marketing, provided that federal cap-and-trade legislation Gore has lobbied for was enacted. Speaking before a 2007 U.S. Joint House Energy and Science Committee, he said: As soon as carbon has a price, youre going to see a wave of investment in it
there will be unchained investment. What better way to reduce evil carbon than to make it a profitable commodity? CCX closed its doors after the September 2, 2010 House elections removed that opportunity.
Since his non-election to the presidency,
Mr. Gore has accumulated an estimated net worth well in excess of $100 million. In addition to his six-figure global warming speaking gigs, he signed on as a Google advisor in 2001before it went publicand received stock options reportedly valued at more than $30 million.
Gore joined the venture capital group Kleiner Perkins Caufield & Buyers in November 2007, whose key partner, John Doerr, has been pushing hard for biofuel subsidies. His firm GIM also became a KPCB affiliate. As vice president, Gore had cast a 1994 Senate tie-breaking vote in favor of ethanol mandates, but has subsequently admitted regrets. He stated four years later that, One of the reasons I made that mistake is that I paid particular attention to the farmers in my home state of Tennessee,
and I had certain fondness of the farmers in the state of Iowa because I was about to run for president.
Over the five years since Al Gore joined KPCB to promote environmentally-correct green tech investments, the
results have been pretty dismal. According to VentureSource, of the more than 60 companies that have received KPCB equity backing, only three have been acquired or merged into other companies. And since the time Gore joined KPCB, only two have managed to go public.
Shareholders of one, Amyris, Inc. a biomass company, have lost 80% of their value since the firms 2010 IPO. The other, Enphase Energy which went public last March, was listed by the Wall Street Journal in December as the *worst IPO of the year.
Amyris is a UC-Berkeley-spawned genetic engineering company originally funded by Bill Gates which raised $16 per share during its 2010 IPO. The company then got big news again when Fidelity bought 6.2 million shares in February 2012 at $5.78 per share. Its now selling at about $3.20.
Although the initial plan was to use genetically-engineered microbes to produce a cheap version of antimalarial medicine to replace a drug naturally derived from a wormwood plant grown by farmers in Asia and Africa,
their product didnt afford a price advantage. Next the company converted the microbe to produce means to create ethanol fuel from plant cellulose, and following scale-up and cost problems,
abandoned that dream to focus upon higher cost chemicals used in cosmetics.
In 2012, Emphase, a solar company, initially planned to price its IPO in the $10-$12 range, but closed at $6 per share. The purchasers, including KCPB, RockPort Capital and Bay Partners, have
since lost nearly half of their investment, with the stock price standing at about $3.30. According to the companys own estimates, it is
unlikely to post any net profit in the near future.
As reported in the Wall Street Journal, the biggest KCPB headaches probably didnt come from the ones that have gone public, but from green ventures that havent yet been sold to other investors. Among the biggest of these is U.S. taxpayer-subsidized Fisker Automotive, Inc., where the firm, along with Advanced Equities, and the Qatar Investment Authority, reportedly sank more than $1 billion.
Fisker is a politically-connected start-up company which was supposed to produce a $100 thousand Karma economy car which was
actually being built in Finland. KCPB partner John Doerr, a billionaire tech mogul, serves on President Obamas Economic Recovery Advisory board. Another senior partner is Al Gore.
Fisker had originally planned to sell 15,000 Karmas in 2012, but then
ratcheted down its projections to 10,000. Reportedly, as of now, more than 2,000 have been produced. Over four years of development, the Karmas price rose from $80,000 to more than $100,000.
After receiving American stimulus support, along with another $21 million provided by the State of Delaware in response to a promise to build the cars there, the company has suspended construction of a U.S. manufacturing facility for a different car, and has laid off 26 employees and 40 contractors. This is to allow time for an original $529 million loan guarantee commitment to be renegotiated with our government due to Karma production delays and a vehicle recall
after already spending $193 million of that amount. And according to an interview with Delawares
News Journal, Alan Levin, the head of the states economic development office, now says, All we want are the jobs and the money back.
Still, various green energy paybacks have afforded Mr. Gore with means for an opulent and hardly carbon neutral lifestyle. His Bell Meade area Nashville mansion alone, one of three Gore homes, was reported to use about 221,000 kWh of electricity per year, more than 20 times the amount consumed by average American households. He has defended this by claiming that some of this power comes from renewable sources, with the balance cancelled out by carbon offsets purchased through GIM, apparently making it all okay. This might seem a bit incongruent, however, to some viewers who were asked at the end of his 2006
An Inconvenient Truth movie Are you ready to change the way you live?
Yet Al Gore has been known to stand on principles
as he sees them. For example, when Glen Becks far-right program,
The Blaze, approached
Current TV with an interest in purchasing them last year, they were reportedly told that
the legacy of who the network goes to is important to us and we are sensitive to networks not aligned with our point of view. Besides, selling to fossil fuel-financed
Al-Jazeera, which apparently is much more aligned with
Currents philosophy, probably provided a lot more green.