Subsidiary of Business 2.0 Parent Overstated Sales
Business 2.0, a popular San Francisco-based magazine and technology think tank that has been successful in predicting the next wave to hit the New Economy, may have suffered more than just a temporary setback thanks to a subsidiary of its parent company, The Future Network Plc.
Future Network is based in Great Britain, but a subsidiary called Future France SA is the cause of the problem. According to Deloitte & Touche, the French company overstated its income by $4.63 million, and although the company is based outside of Great Britain, the English parent suffered a loss in stock value--the lowest the company has seen in the last year.
In addition, the effect was felt in San Francisco, where many employees who work for Future Network are based. Employees are worried about the value of their stock options.
Future Network, which is known for the magazines, "PC Gamer" and "Maximum PC" in addition to its "Business 2.0," has enjoyed great success over the last several years with its Business 2.0, and with the accounting mishap, it may incur judgment from a number of investors and customers.