Offerpal Tries Out A New CEO. Shukla, Queen Of Scams, Is Out.
by Michael Arrington on November 4, 2009

Offerpal Media, the central character in the Scamville drama, is changing CEOs. Anu Shukla is no longer the CEO of the company she cofounded. Veteran executive George Garrick, most recently the CEO of Mochi Media, is now the CEO of the company.

From the press release quietly announcing the change:

Offerpal Media, the leader in virtual currency monetization for online games, virtual worlds and social networks, announced today that George Garrick has been named chief executive officer.

Garrick brings more than 25 years of experience in technology, advertising and consumer businesses to Offerpal Media. His track record of accelerating revenue growth and brokering strategic relationships with customers and partners will be critical assets in leading Offerpal Media.

I had an…interesting public exchange with Shukla last week at the Virtual Goods Summit in San Francisco (see video at end of this post). I’ve also embedded it below.

She vehemently denied that her company’s offers ever scammed users. Despite her defense of the industry, MySpace, Zynga, RockYou and others have since made significant policy changes to protect consumers from the types of offers Offerpal peddles.

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  • The rate at which this story has developed is unbelievable! The last week has brought on revelation after revelation. Out of interest, has TechCrunch ever had an industry-specific “investigative piece” unravel this quickly?

    • Her answers in the video were “bull shit.” I’d bet anything that at least 5% of offers fulfilled are not legitimate, compared to her 0.0001% estimate.

      Most people who get these charges on their phones by accident doing their fake “Idiot Tests” probably don’t bother getting a refund from offerpal once they cancel the subscription through their carrier. Especially the parents of the 14 year old kids who don’t even understand how the charge got there in the first place.

      • Ranjith K. Umaran - November 4th, 2009 at 8:25 pm PST

        Carriers are really good about offering refunds, no questions asked.

        • I disagree with that. At&t spend hours arguing with my brother, saying that he needs to cancel the subscription with the company his son signed up with. His 11 year old son has no idea where he put the phone number.

          In the end, they had to cancel the phone service to get rid of it.

          • I had the same experience with Verizon after my daughter unknowingly signed up for a daily trivia game that showed up on my phone bill at $9.99 per month. In several phone conversations over two weeks, Verizon, which I believe has truly exceptional customer service, insisted they could not cancel the service because it was provided by a third party. I had to change my daughter’s cell phone number to make the whole thing stop.

          • AT&T, Verizon etc. all make half of this $9.99 per month. this is a huge revenue stream for them. why isn’t anyone taking them to task? they can easily put a stop to this.

    • Agreed. I’m frankly a bit astonished that action was taken this quickly and that it was apparently so sweeping. When I told a friend about this story, he tried to impress upon me that there’s more to technology news than TechCrunch. Certainly he’s right, but it’s been a while since I’ve seen the little guy take on Goliath and actually have a positive impact.

      • According to all the coverage everywhere else but on TC ( and I just posted the excerpt from VB interview here) she is not gone, remains the largest shareholder and plans to work 60 hrs a week blah blah so howcome MA is posting she is gone – am I missing something. It seems quite common in the valley to bring in the adult supervision for the IPO google, yahoo et al

    • You have to also give credit to Facebook– they truly do care about the user experience and have put it above monetization. I know this from personal meetings with a number of executives– it is consistent across the board.

      Like any big organization, there are coordination issues, but I give them an A here. Dealing with spammers is not easy– there are so many ways they can slide around your rules.

    • that was exactly what I was going to post….

      When I read the original post on TC, where she had been quoted, I didn’t expect to actually hear her say the words in the video.

      But she did, was their bad blood before or is that typically how she reacts to questions about the business. Suspecting the latter given this news.

  • Mike,
    Looks like you are King maker and brother for sure.

    Man Anu was foolish and unprofessional to you. I watched the entire youtube clip. The way she replied no CEO should.

    So good for you and bad for her. She should learn from this and be more professional and to the point next time :) .

  • Wow, so Arrington pretty much got her fired. Shows you the impact Techcrunch has.

    • What about getting the CEO of the other start up fired…from the likes of Slide, Myspace, Fakebook.com….ask Mike about that?

    • no, she got herself fired. c-levels shouldn’t behave that way and it reflected badly on the entire company. she blew it when it mattered, and for executives who are the face of the company, it *always* matters.

    • Want to fire a CEO? There’s a blogger for that! ;)

      • Anand, you’re the guy who is always so proud of your countryman for their ability to “steal” jobs from Americans. You have written NUMEROUS comments directed at numerous Americans, like myself, for being insecured incompetents who “lost” or stand to lose their jobs to superior Indians. It seems the primary source of your national pride stems from the ability of Indians to, in your words, “steal” jobs from Americans.

        Seems like your countrymen, at least one of them, have are also good at “stealing” in other ways. Aren’t you proud of her Anand?

        • Haha..At least this thief bravely encountered the police..There were quite a few other thieves who had been sneakily doing the same thing and so meekly surrendered..lack of balls, and I am not putting that on the race or something..just that you asked..

        • Btw, mister, your comments makes it look like I’m the racist bigot…Look back at all the Wadhwa posts to see who’s the one ranting at the other races and nationals..

          • Let’s not get into accusations and finger pointing. That’s too far off topic.

            For now, I just want to see if you have a valid explanation for your bizarre sense of national pride. Just want to see if you will “attempt to defend the indefensible,” like Anu did.

          • Of course, why would I defend a scammer just because she happens to be Indian..There are a billion+ Indians out there..

            I’ve better things to do – like responding to an American racist’s comments..

          • I didn’t ask if you were defending Anu Anand.

            I asked if you were going to defend or explain your national pride, which seems to be based on Indians’ ability to “steal” American jobs.

          • I cannot believe we are even having this discussion, the tired argument of one race or nationality being better or intelligent than the other. I think intelligence is an individual characteristic and has nothing to do with race or nationality. If what David mentions about Anand claiming – his countryman for their ability to “steal†jobs from Americans. – has any truth then he is as bigoted as he is accusing anyone else to be. At this point I would like to mention I am an American of Indian origin (born and raised in India and naturalized citizen). I am really tired of old, tired arguments about Indian superiority and mention of 5 famous individuals who invented something cool or started something big. I have worked with brilliant Americans, Indians and other nationalities and not so bright people from the same set. In fact I started my career in US for a small company started by 2 brilliant Americans and an Indian. I have also had my issues with the “offshore model†and I personally had contractors in India removed twice and eventually change the contracting company. The new company was OK but still not satisfactory so we personally interviewed and hired people over there that are good. That shows the dichotomy of talent or lack of it. It is one thing to be proud of your heritage which I am but another to be so blind sighted by it and make dumb blanket statements. What if Indians didn’t speak English as well and Russians did, will we be in same boat? I am not trying to defend David or slam on Anand I am just trying to highlight the fact that correlating nationality or race and superiority is a slippery slope and it just stinks.

          • Great David Ord..Mission Accomplished eh? ;)

          • Thank you for for the great comment D. I agree. I do believe that there is really no difference in the races, and that we are all humans.

            Anand, you should be ashamed of yourself!!!

            In any case Anand, please stop writing inflamatory comments about American “losers” losing their jobs to superior Indians. These types of comments are not becoming– of someone who is truly superior.

          • You’ve come a long since then,David..I am happy for the world..

            http://www.mobi...#comment-452046

            And please, stop making it look like I was happy for Indians stealing jobs or something..That was merely a retort to your bigotry in the link above or any of those Wadhwa posts.. :)

            peace.

          • Anand Srinivansan is a bigot. I’m going to see to it that Arrington gets him fired. :)

  • She was completely unprofessional and condescending in her response. It looks like they have fixed the problem. Nice work!

  • Her unprofessional response to Mr. Arrington’s voiced concerns at the conference earned her this eventful fate.

  • Wow. I’m impressed, and keen to see what dodgy industry/practices are going to be taken on next…

  • This further validates that MA teports meaningful content, not to pound his chest but integrity with his reporting, congrats!

  • Looks like all that $hit she was talking about hit the fan……….

  • Looks like all that $hit she was talking about hit the fan………

  • Memo to CEOs: Don’t act like an ass in public when Mike Arrington is on the case.

    Hopefully this is not window dressing.

    Nice work, Arrington.

  • Congratulations to Offerpal on a great hire. I’ve worked with George a number of times, ultimate professional, I suspect very good things ahead for the company…

  • Investors taking out the trash.

  • Way to go Michael! Keep up the good work and rid social networking users of all the scamming!

  • ahaha wow. I really dont know what to say.

  • Who knows if that’s why she’s out it could be other reasons. It sure wasn’t good PR though.
    What is clear is her response to Arrington trying to understand her industry was a total attack on Michael. She could of used that opportunity to clear things up instead of saying he’s full of it… would of been a great chance for her to start the “we are against scams” wave but instead she got massively defensive and missed a golden PR opportunity.

    • Agreed. They say that on multiple choice question, there are wrong answers and then there are answers that are exactly wrong. Her response was EXACTLY wrong.

  • Woahh.. Arrington now has the power to remove CEO’s.

    With great power comes great responsibility.

    Thank you for (hopefully) making the world a little bit better

  • You can fix that blockquote problem by adding the css style overflow:hidden

  • she has no ‘authority’ to answer the way she did.

    If Larry Ellison answered like that, he would get away no problem. just my opinion… :D

  • First, calling someone the “queen of scams” is potentially libelous, especially when your actual malice toward Anu is well-known.

    Second, no one can recruit and hire a CEO in two days. This has obviously been in the works for some time, and has little or nothing to do with Mike Arrington’s self-aggrandizing comments.

    Third, no I do not work at or have any special insight into Offerpal.

  • Arrington is playing god here.

    • all i did was ask her how she could defend the scams ethically.

      • Mike man, you are the king maker. everyone bow down to the king !!!

      • I realize this is a bit off-topic, but I am really curious to learn more about libel laws. However juvenile this will indeed sound, I have a few things I’d like to put out in the open about a former company and I want to make sure I don’t get myself in trouble. Any good resources?

        • my general rule is to ask forgiveness rather than permission. :-) but in all seriousness, send me an email. let’s discuss. tips@techcrunch

        • Even if you expose the truth on blogs or wherever the truth the costs to defend are significant. Then you have to hire another attorney to go get you prior attorney fees and then hope the company has funds for you to retrieve.

          Companies will do whatever they have to to squash little people telling big truths.

          Very simple for a company to lodge a suit- very expensive for the little guy to defend. Michael can say the truth as it lay as he can defend, which in this case is simply revealing industry practice and few if any would surmount a squash case.

        • You know it wasn’t very smart to make this comment in public if you were really worried about libel considering you didn’t post as “Anonymous.” Assuming you haven’t worked for tons of companies, it probably wouldn’t be too hard to find out where the leak came from now. Either way, I agree with Mike:

          “The question isn’t who is going to let me; it’s who is going to stop me?” ~ Ayn Rand

          (not promoting Ayn Rand’s philosophy, just like the message behind the quote).

          • I appreciate your comments Tom and you are right in that it may have been wiser to post as anonymous. If, of course, I was looking to hide behind an anonymous label – which I’m not. It would indeed be very easy to figure our where I worked, and judging by the bump I got in traffic at my website, that’s exactly what people are trying to do. That’s fine, I don’t mind as I haven’t said anything that I’m scared of, or ashamed of – nor have I actually said anything about this company publicly. For all anyone knows, I just want to call a member of their staff Hitler on my blog to let off some steam.

            I was simply seeking advice on what exactly is and isn’t covered under libel law and where you can get into trouble. As Dave and you both point out, if I had the resources Mr. Arrington does, I wouldn’t really think twice. But, unfortunately, I am just the little guy – for now.

      • gotcha capitalism - November 4th, 2009 at 5:39 pm PST

        Amazing — For your next trick, could you do something about Paulson’s Goldman Sachs (<= AIG) $12B bailout please?

      • Power of a Blog: What a Blogger Can Do?

      • +1

        Priceless. . .

  • Note to self: carry a picture of Mike everywhere.

    If criticism is levied in my direction, compare picture to levier of criticism, if a match then avoid else engage.

    Unless of course you really believe in your position. Then defend at your own risk.

  • Nice work, Michael. This is the power of good journalism. For all the (sometimes deserved) criticism of the blogosphere, it’s focus like this that makes good things happen. Willing to bet this will now be covered by the Times, etc.

  • Offerpal needs shut down. Her response reflects the company’s mindset which is not healthy for a transaction platform.

    Anu – Go back to the gutter you came from.

  • sh1t, doublesh1t, bullsh1t….

  • Ok, when’s the book coming out? I double-checked this page to make sure The Onion didn’t write this. Once again, truth is stranger than fiction.

  • I have been following the incredible speed at which this story has been unfolding. Hats off to Mike for bringing this story to the forefront and keeping us all abreast of the details. This is the cream of the crop TechCrunch investigating I would like to see more of.

  • Moral of the story: Don’t throw stones from a glass house.

  • This was probably a reaction to top offerpal partners threatening to pull out. No one wants to associate themselves with a dick company. Changing CEOs should neutralize some of the negative pr. Question is for how long.

  • I guess an unjustified call of shit, double shit, and bullshit is all it takes to land an executive level scammer in DEEP SHIT.

    Glad Arrington brought attention to this issue. All these scammers have been flying under the radar for years and hiding beyond plain sight. They’ve been in our collective face, Jerry Springer style for years.

    The mainstream media is not clued in enough to tackle the issue. Glad Arrington is picking up the mantle of true journalism and exposing this to the wider world.

    This issue has been there for a long time, but change doesn’t happen until the mainstream becomes aware of it.

    Kudos to you, Arrington.

  • You don’t negotiate a new CEO in three days.

  • WOW!… just watched the video. Michael, I simply applaud you for standing up to companies like this (i.e. The bad guys). That was simply amazing!

  • No one mentioned Hi5.
    100% of their revenue is from shoot the pink IPOD
    and be scammed.

    This is the end of social networks.
    Congrats Mike! a simple question, right place and the baloon pops. It was an analyst at lehman who asked ‘will amazon default on bonds’ that caused the 2000 crash

  • So by firing her are they admitting that her comments were wrong? Does that mean Offerpal is admitting that they DO spam users and Shukla was wrong?

    **Sigh** ….

    • No.

      Maybe their statement is very simple: Anu’s demeanor is not becoming of a CEO.

      It doesn’t have to be an admission of charges regarding their business policy.

  • Congratulations, Michael. You’re the Glenn Beck of tech! ;)

    • hold on – don’t compare arrington and beck. arrington did a good thing by asking an honest question in public. beck is crazy (and doesn’t like black or gay people).

  • I have zero background on this app and whether or not it’s ethical. Clearly Arrington and Anu have a “beef” he questioned, then she retorted. Albeit strong, it’s nothing that’s “way” beyond something Arrington you would say. C’mon…. is anyone really “offended” by her sh*t comments ? Really? C’mon! If you are, you shouldn’t be involved with or follow start-ups. She’s passionate about what she does (something all the VC’s look for) and probably felt her application was under attack… she responded strongly. Big deal if she used profanity. It’s not like she went crazy with it and started dropping f bombs all over the place. I also agree with “Ridiculous” in that there must be more to it than just these comments. Perhaps there was a great reason to get rid of her…perhaps Offerpal is unethical….. I have no idea. But the TC die-hards on here saying her firing was 100% due to her profane comments and Arrington’s questions/comments is a bit of a stretch don’t ya think ? Arrington… I think you’re a smart guy and an brilliant marketer, but like Jason says… don’t let the forum posters on here urge you to “Get High on your Own Supply”

    • What is it with commenters today starting with “I have no idea what I’m talking about but…”

      If you had any idea what you were talking about you’d know that the story has nothing to do with profanity and everything to do with her defending and indefensible position. Her manner of defending it is just another indicator that she knew she was wrong.

      The firing looks to me to be an attempt for Offerpal to be seen to be cleaning house.

      • Or as George Costanza would say, ‘it is not a lie if you believe it’ and she believes it Jerry.

        I guess making the kind of money she does from these scams leads one to turn a blind eye…you can nearly here the air go out of all companies associated with virtual currency.

        Next stop, domainers. Oh wait, that was done already today.

        What about Google Mike? How can a company that aggregates everyones content for free and put ads around it not allow others to aggregate their search results and put their own ads and not googles’ around it?

      • Paul. I wanted to qualify my opinion by stating “I’m not an insider” and have no knowledge whether or not Anu’s termination is due to unethical behavior. That being said, it’s also my opinion that her termination wasn’t 100% because of Arrington’s questions/comments nor her response to those question/comments. It’s simply my opinion that some, if not most, of the forum posters on here believe that Arrington caused the termination. I’m just stating my opinion that I don’t think that’s the case. But you know what dude ? Who cares ? Why do I even care enuf to even post about this ? I don’t know Anu nor Mike… so I guess you got me there…. time for a beer and some baseball.

      • You don’t hire a new CEO with Garrick’s qualifications in 3 days. This has been in the works for MONTHS.

        Any high-tech watcher can tell you… it’s common practice for successful start-up companies to reach a certain size and velocity and then bring in a verteran CEO to lead them to the next level. That’s obvious what is happening here.

      • so, paul, now there are no more scams on the internet? how about throwing libeling the sms scam companies themselves, or the other offerpal-like-companies like superrewards (much older in the scene, so you can imagine the type of offers they ran)

        i never read an offerpal response to michael’s articles. not like they need to , but they did enforce facebook’s policies to their offers the week before this incident.

        finally how about convincing arrington to remove scammy ads from techcrunch? aren’t you the guys who thing ethical > legal?

      • Your Ex-employer put out a pretty awful article covering this story on Thursday…

    • You’re full of shit. Find me one place where Arrington expressed offense to her shit-bomb. I felt he was unusually calm and composed. He could have easily fired his own shit-bomb in his rebuttal but instead he chose to stay on topic.

      It could be that this offended some of offerpal’s partners or VCs. Blaming Arrington for that is insanity.

      • The average person, myself included, would have broken a sweat and experienced a 50% increase in heart rate. I was waiting for Arrington’s voice to tremble, or his hands to shake when took the mic the second time. I was surprised, and impressed, that he was still calm and coherent.

    • I think she deserves to get fired for being bad at swearing*. It sounded like she was swearing in Newspeak – lucky for Michael she didn’t drop a “doubleplus shit” bomb or he would have been crying himself to sleep that night.

      (* and for being unprofessional.)

  • arrington is just a pawn in big vcs games.

  • Yay! It is nice to see MA using this pulpit to make the Internet a better and safer place. It makes me feel better about the world when CEOs like this get canned/demoted.

  • No BS Mike had a very strong point and that is why industry is taking drastic changes including demotion of CEO’s.

    BTW Mike did you cry on the way back from that conference ?

  • Kudos Michael to the power of your words for creating changes. New media is doing its job!

  • Whether Mike “brought down” a CEO or not is really moot.

    Next time I see him, I will thank him for having the courage to ask the right questions that will try to keep a lid on ridiculous valuation multiples based on hard-to-pin (or scammy) revenues.

    Last thing any of us need are inflated enterprise valuations based on unfair transactions with consumers. That leads to a linking of bad valuations that lead from offer company, to social game network, to social network.

    If he had been in the room for Fox’s involvement in Jamster/Jamba, maybe that would’ve turned out differently.

    Thanks, Mike. I appreciate it.

  • Mike Arrington, I cant stop laughing.

  • Garrick is about infinitely superior to the lady he is replacing.
    Everything he touches seems to turn to gold. I worked his crew at Flycast back in the day. He is a quality mind with a vast network of contacts– all those ex-IRI guys are entrepreneurs it seems.

  • This level of journalism is shit, double shit, and bullshit.

  • One thing to realize is that Shukla being swapped does nothing in terms of increase confidence in Offerpal’s practices. In fact, this is probably a publicity “stunt” to spin a bad story into a promising one.

    Shukla probably has enough stock vested in the company that it will only bode well for her to replace herself anyhow. Think, people, think!

  • Moral of this: Don’t mess with the media! The pen is mightier than the sword.

    Well done Mike!

  • Way to go Mike. Just saw the Youtube clip – she deserves this and more.

    Can you now please go after AT&T? They charge me for without providing service.

  • facebook game developer - November 4th, 2009 at 7:35 pm PST

    Wow there’s so much bull$hit in her own response that it’s hard to break everything down, but let me just point out one more thing that no one has brought up:

    “We process 30 billion virtual points a month.” How is this number impressive at all aside from being able to use the number 30 billion in any sentence? There are so many apps out there with ridiculous conversion rates like 50,000 points per $0.01. This number is completely irrelevant without relative numbers and is clearly meant to confuse people into thinking she said dollars and not points.

    • Her goal was to throw up as much flack as possible. She had no argument, all noise in the hopes that Arrington would stand down. Glad Arrington’s response kept on point, easily shrugging off her attempt at rhetorical intimidation.

      What’s priceless are all the SHIT EATING GRINS on the panel. Looks like every one of them was breaking a cold sweat.

  • I viewed the whole video. Well done, MA.

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