Closing Day: Fifty Million Dollars

That week, we were waiting to hear from Penton Media on the final acquisition terms for my company.

I kept asking Robert to check the fax machine three times a day.

Based on what Wilma had told me, we were expecting an offer of around $50 million. The formal proposal was scheduled to arrive on Friday, September 14, 2001.

* * *

On Monday, we were buried in deadlines and follow-ups — business as usual.

On Tuesday morning, Carmen stopped by my office on her way to the kitchen.

“A plane just hit the World Trade Center,” she said. “Robin is worried. Her brother works in one of the buildings.”

Within hours, we were watching history unfold in real time, along with the rest of the world.

* * *

As the magnitude of what had happened became clear, I said, “Everyone, please turn off the lights and go home.”

I took a few of the younger staff with me, and we headed home together.

For the next twenty-four hours, we sat glued to the television — stunned, silent, trying to understand how everything had changed in a single morning.

* * *

We returned to work on Wednesday.

The next day, my phone rang. It was Tom Kemp.

“Fuat, everything has changed,” he said. “The Javits Center is now being used as a triage center for the World Trade Center.”

He continued, “I had InternetWorld scheduled there next week. There’s no show.”

I said, “Tom, my Web Services Edge conference was at the Javits the week after InternetWorld.”

There was a long pause.

Then he said, “Fuat, I’m calling to let you know we’ve taken a massive hit. I’m not even sure we’ll still be in business after the dust settles. There will be no acquisition of your company. It’s over.”

* * *

Then he added, almost apologetically, “But I feel terrible. I can sell you the Streaming Media show — practically give it to you — for $200,000. Send me a check and it’s yours.”

Just one year earlier, Penton had acquired Streaming Media, Inc. in a deal valued at up to $100 million — roughly $65 million paid up front, with an additional earn-out of up to $35 million tied to performance.

Now Tom was offering me an event he had effectively paid $65 million for — for $200,000.

* * *

I was furious.

I walked into Grisha’s office and said, “Grisha, what is this? A bait and switch? What the hell am I supposed to do with Streaming Media? This is the biggest emotional whiplash of my life.”

That was the last time I ever heard from Tom Kemp.

As he had predicted, Penton slowly melted away.