National Review‘s The Corner posted an article yesterday about Gawker Media, a website that has been very free with its criticism of Mitt Romney‘s financial dealings.
The article reports:
The gossip site also has released some 950 pages of material related to Mitt Romney’s investments, mostly having to do with Bain Capital. In Gawker’s own words: “Together, they reveal the mind-numbing, maze-like, and deeply opaque complexity with which Romney has handled his $250 million fortune.”
There was nothing illegal (or even interesting) in the material released, but there is more to the story.
In December 2010, the New Yorker reported:
Gawker is organized like an international money-laundering operation. Much of its international revenues are directed through Hungary, where Denton’s mother hails from, and where some of the firm’s techies are located. But that is only part of it. Recently, Salmon reports, the various Gawker operations—Gawker Media LLC, Gawker Entertainment LLC, Gawker Technology LLC, Gawker Sales LLC—have been restructured to bring them under control of a shell company based in the Cayman Islands, Gawker Media Group Inc.
Why would a relatively small media outfit based in Soho choose to incorporate itself in a Caribbean locale long favored by insider dealers, drug cartels, hedge funds, and other entities with lots of cash they don’t want to advertise? The question virtually answers itself, but for those unversed in the intricacies of international tax avoidance Salmon spells it out: “The result is a company where 130 U.S. employees eat up the lion’s share of the the U.S. revenues, resulting in little if any taxable income, while the international income, the franchise value of the brands, and the value of the technology all stays permanently overseas, untouched by the I.R.S.”
