Unicorn OpenWeb announces new CEO, but founding CEO refuses to step down
Unicorn OpenWeb announces new CEO, but founding CEO refuses to step down
Board chairman Tim Harvey notified the employees that he will be taking charge as CEO, but founder Nadav Shoval replied by saying he's not going anywhere. “The board has falsely stated that I am stepping out of my role as CEO. Let me be clear: that is not true and not my intent.”
In a dramatic turn of events at Israeli unicorn OpenWeb, a boardroom clash has erupted as founder Nadav Shoval defies the company's decision to appoint board chairman Tim Harvey as CEO. The decision was announced in an all-hands meeting on Tuesday. Announcing his intention to stay in the role, Shoval accused the board of contract violations and undermining the company’s best interests.
“The board has falsely stated that I am stepping out of my role as CEO. Let me be clear: that is not true and not my intent,” Shoval wrote in an email to the employees. “I will continue relentlessly fighting for OpenWeb's mission and purpose. I notified the Board that they breached my contract, which was intended to directly call out their concerning conduct. Instead of addressing these issues, the Board decided to move forward with an attempted leadership transition, continuing to act against OpenWeb's best interests.”
Shoval’s letter followed an earlier email sent to employees announcing Harvey’s appointment as CEO. “I will be stepping in as our new CEO, succeeding Nadav Shoval, who has led the company with incredible passion and vision since its inception,” wrote Harvey, before going on to thank Shoval for all his contributions.
Following Shoval's subsequent letter to the company's employees, Harvey wrote to the staff: "Apologies to everyone who received this email. We are progressing with the CEO transition process as planned. As we move forward, we are committed to handling this situation with the utmost respect for all individuals involved and acknowledging their contributions to OpenWeb. Our priority remains the continued success, stability and providing value to our partners."
The Israeli-founded community engagement platform has over 100 million active users and 1,000-plus publishers. Some of the world’s top publishers, including The New York Times, Hearst, Yahoo!, Penske Media Corporation, and News Corp, rely on the B2B2C platform to help them host healthy online conversations and build communities.
OpenWeb, which was founded under the name Spot.IM in 2012 by Shoval, Roee Goldberg and Ishay Green, raised $170 million in Series F funding led by Georgian at a valuation of $1.5 billion in October 2022. To date, the company has raised $393 million in funding.
"OpenWeb welcomes Tim Harvey as interim CEO, replacing Nadav Shoval. The company recognizes Nadav for his passion and contributions as the founder and CEO of OpenWeb," the company wrote in a statement. "Tim, a former advisor and board member at OpenWeb, is well-acquainted with the business and brings over 30 years of leadership experience in high-growth, venture-backed, and public companies. He is also Chairman of VTS, a commercial real estate software company, and serves as a board member and advisor to other leading software and technology firms.
"OpenWeb, through its world-class employees, continues its mission to transform online conversations, creating trusted spaces for meaningful dialogue that advances how we communicate on the web. The company remains on a strong growth trajectory with a clear strategy and a talented team. The leadership team is committed to maintaining our momentum and delivering continued success."
