Influential short-seller Carson Block, the founder of Muddy Waters Research, seems pleased this morning.
That’s because NQ Mobile’s co-CEO, Omar Khan, just stepped down from his role at the Chinese telecom company that Block has publicly called a “massive fraud.” The company said Khan will remain in an advisory role through December 31, 2015.
“We wish all the best to Omar Khan in his new endeavours, which will doubtless provide fewer opportunities for self-humiliation,” Block’s Muddy Waters Research Tweeted.
In October 2013, Block published a damning research report accusing the company of having “fictitious” revenues and customers that don’t really exist.
Shortly after that report, NQ’s Khan refuted Block’s claims in a series of financial TV interviews.
Since Block’s report was released, shares of NQ Mobile have fallen more than 83%. Block thinks the stock will go to $US0.
On Tuesday morning, shares of NQ Mobile were last trading down 1 cent, or 0.24%, at around $US4.13.
Block seems pleased about the news. Check out his Tweets:
Here’s a chart of NQ’s stock:
Here’s NQ’s press release about the management change:
DALLAS and BEIJING, April 21, 2015 /PRNewswire/ — NQ Mobile Inc. (NQ) (“NQ Mobile” or the “Company”), a leading global provider of mobile Internet services, today announced that Mr. Omar Khan, current Co-Chief Executive Officer of NQ Mobile, has decided to transition to an advisory role and step down in his capacity as Co-CEO and Director of the Company, effective as of May 1, 2015. At the same time, Mr. Khan will also resign from his position as the Chief Executive Officer of NQ Mobile US, Inc., a direct wholly owned subsidiary of the Company, and from his other roles within the Company. To help with a smooth transition, Mr. Khan will remain with the Company as an advisor through December 31, 2015.
As part of this transition, in order to streamline the management process of the Company, the Company will also eliminate the Co-CEO management structure. The Board of Directors has decided to appoint Mr. Zemin Xu, the current Co-CEO of the Company, to take over as the Company’s Chief Executive Officer, effective as of May 1, 2015.
“Omar joined us at a very important time in our business evolution and development,” said Dr. Vincent Shi, Chairman of the Board of NQ Mobile. “He helped guide our company’s important transition from being a mobile security provider to being a true global mobile Internet services provider. We would like to thank Omar for his stewardship and great service during his tenure and we are grateful he has helped us prepare for an even brighter future.”
“When I joined the Company in January 2012, I shared with Company management a vision and passion for building a global mobile Internet services company with expanding application and services for consumers, enterprises and partners alike,” said Omar Khan. “I am proud of the progress we have made over the past 3 years. I believe the timing is right for me to leave as Co-CEO and for Zemin to lead this Company into its next chapter. As a Company today, NQ Mobile has a more diversified business model, enjoys a deeper bench of strong leaders, and is generally more process driven, better governed and far better positioned for a great future then when I first started here. I am excited about the Company’s future and I wish the best for Vincent, Zemin and the rest of the management team as well as the Company’s employees and shareholders.”