Again, Citron chose to continue to evade Dr. Lee’s questions and criticism on their erroneous report and, under attack by the 61 business leaders for fraud, put together an attack on Dr. Kai-Fu Lee today. They had four main points, and here are Dr. Lee’s responses:
1) Qihoo led the investment into Dr. Lee’s company.
Response: No! Qihoo is not an investor in Dr. Lee’s company (Innovation Works). Qihoo is the smallest passive corporate investor in a fund that Innovation Works co-manages (with about 80 investors). Qihoo is perhaps the biggest competitor for Dr. Lee’s companies. And Qihoo will not be an investor going forward in Dr. Lee’s own new fund.
2) Qihoo led the investment into Dr. Lee’s company. Dr. Lee did not disclose that.
Response: Dr. Lee volunteered that disclosure to WSJ (WSJ can vouch for that), and the information is also in the public domain. As an “investigative reporting” company, Citron was too incompetent to even find that! What happened to Citron’s “nose”?
3) Sequoia is an investor in Qihoo and Dr. Lee’s company (actually co-managed fund).
4) Sohu/Sogou is a company Dr. Lee hates due to disputes of the past, so he is attacking Citron for helping Sohu/Sogou.
Response: Actually after the dispute with Sohu/Sogou, Dr. Lee has got to know both Sohu and Sogou CEO, and there is strong mutual respect among them. Sogou CEO joined this condemnation for Citron despite Citron’s praise for his company. Note that not everyone acts out of personal spite like Mr. Left, but people like Dr. Lee and Sogou CEO values integrity higher.
Dr. Lee has made very clear that he does have an interest in stopping Citron’s fraud, because Dr. Lee’s company has invested in 50 companies, most of which plan for US IPO. If Citron’s fraud continues to fool American investors, it would create an unfair and hostile environment for Dr. Lee’s investments. The same concern has been expressed by the 21 investors with their names signed on the condemnation letter.
Citron’s mudslinging on individuals is as unprofessional and false as their mudslinging on companies. Also this reminds them they should answer our questions, rather than bring up irrelevant and wrong information about Dr. Lee.
REFERENCE | Citron Research: The Final Word on the Citron vs Kai-Fu Lee Debate?