I want to call the attention of our readers to two great blogposts related to Gigamedia that will be of great interest to those following the VIE story. It appears that Gigamedia decided to demote the head of their China operations, but perhaps the board should have first considered that he owned their VIE. He is gone, the VIE and all the chops are gone, and the company is in a world of hurt.
The first post was written by my former student Fredrik Oqvist, who also blogs here occasionally but has now started an excellent blog called China Finance.
Stan Abrams, a Beijing based lawyer and professor, blogs at China Hearsay. Stan picks up on Fredrik's post. I have nothing to add to these posts - they are consistent with everything we have been writing on this blog.
Speaking of blogs, there is an excellent post on reverse mergers at the China Law Blog. The post also says nice things about this blog! The China Law Blog was the inspiration for this blog and we have found that the interests of the accounting and law professions often overlap.