Jeffrey Peterson

Jeffrey Peterson (born October 11, 1972 in Santa Barbara, California) is an American technology entrepreneur and Arizona millionaire who is considered the pioneer of Hispanic Internet in the United States. ["a Latino Web pioneer", "Hispanic Magazine", Volume 17; Issue 5; ISSN 0898-3097 , 1 May 2004] Known for both technological and business savvy, he is best known as the founder of Quepasa, one of the most popular Hispanic online communities. ["Latinos clicking into the online revolution at record rate", by Lee Romney, "Los Angeles Times", 25 June 1999]

Early years and childhood

Peterson grew up in Santa Barbara, California. The son of a British Mother and an American father, his paternal ancestors emigrated to Santa Barbara from Spain. Peterson was educated at public schools in the Santa Barbara, California area. According to an article published by the "Arizona Republic", Peterson was raised next door to the director of the University of California, Santa Barbara computer laboratory, who introduced him to computer programming at an early age in 1978. "death of a dot-com", by Jane Larson, "The Arizona Republic", 9 September 2001, cover story]

Remotely connecting to the UCSB mainframe computers via terminal and modem for hours on end, it was here that Peterson would spend the most significant hours of his early childhood. The young guru would quickly learn to author his own Unix and VMS based software applications on the campus PDP-11 and DEC VAX systems. In the early years of computing, the largely technical science of systems programming was a pastime overrun by the likes of college professors and engineers. To fit in, Peterson reportedly maintained an identity for login on the MIT Artificial Intelligence Laboratory PDP-10, where he was known by his peers as "Dr. Jeffrey Peterson", at the age of eleven. [http://melvyl.cdlib.org "California Public Schools Forum" Volume 2: Microcomputers] "Graduate School of Education", UCSB, June 1987 (98 pgs.)]

Programming years

In 1981, Peterson landed his first job, as a troubleshooter with a software company focused on the Commodore series of computers. In 1983, he worked as a product tester for vintage hardware manufacturer LOBO Systems. During the mid 1980s, Peterson focused on the development of software for freely distributed Bulletin Board Systems and Multi-User Dungeon gaming applications. He was known among his peers as an expert at implementing customized kernel-level multitasking solutions, who regularly pushed early hardware beyond traditional limits. Peterson, already a seasoned Assembly and C language developer in his early teens, contributed heavily to the emerging F/OSS programming communities of the 1980s. He has published numerous texts, including articles on multiprocessing, Quasi-empirical methods, and Artificial Intelligence.

Well acquainted with the college scene from his earlier programming years, Peterson worked as a disc jockey at UCSB college radio station KCSB-FM from 1986 to 1990. "La Cumbre" Yearbook, Volumes 67-68, Copyright 1987, 1988 ASUCSB] During the late 1980s, Peterson held the position of "Traffic Manager" on the sixteen-member executive committee at college radio station KCSB-FM that gave both Jim Rome and Sean Hannity their first radio broadcasting jobs.

Peterson was ridiculed about his early programming years in a satirical article published by TheStreet.com in 2004. [ [http://www.thestreet.com/_tscs/markets/dumbestgm/10162761_3.html "The Five Dumbest Things on Wall Street This Week"] by George Mannes, "TheStreet.com", 28 May 2004] The article, which highlights Peterson's public biography as filed in a Quepasa Proxy statement on April 23, 2004, [ [http://www.sec.gov/Archives/edgar/data/1078099/000119312504068252/ddef14a.htm Form DEF-14A] , "quepasa.com, inc.", 23 April 2004] asks the question: "are we supposed to believe that the guy was programming computers when he was 10 years old?" Nonetheless, Peterson is credited at this age as a contributor on the inside cover of a best selling microcomputer software book in 1983. [Jeffries, R. "Commodore 64 fun and games: volume 2", Warner Books, New York, N.Y., c1983. ISBN 0-446-38183-7 LCC: GV1469.2]

Peterson dropped out of high school in 1988 at age 16, to pursue what would become a successful career in Investments. He continued postliminary study in the areas of Law and History. Peterson was nominated as "Most Controversial BBS User" in a poll taken in his home town during November, 1991 [http://swagazine.com/bbs/history.html]

Career

Wall Street Years

In 1989, Peterson landed a job in operations at Brokerage firm Lehman Brothers, where he quickly learned about the stock market. He would later pass the industry exams, becoming a Stock Broker at age nineteen. After working for several brokerage firms, he landed in the field of Investment Banking, where he gained experience in Corporate Finance. Peterson would go on to work with investment groups that financed hundreds of companies primarily through Initial Public Offering transactions during the strong stock market conditions of the early 1990s.

Quepasa.com

In 1997, Peterson founded Quepasa.com. ["Hispanic market one to lure" by Greg Farrell, "USA Today", 6 Aug. 1999] The website was the first major online community to focus on U.S. Hispanic Internet users. A year later, he successfully persuaded Arizona sports mogul Jerry Colangelo to help raise in excess of $20 million dollars of seed capital to launch the company. Phoenix Suns star Jason Kidd signed on as an investor. Former Denver Broncos quarterback John Elway joined in, investing $500,000. "tumult in top ranks key in Quepasa's downfall", by Jane Larson, "The Arizona Republic", 10 September 2001] "Quepasa: helpless to stop fall Hispanic dot.com" by Jane Larson, "The Arizona Republic", 11 September 2001]

Within months, Costa Rican President Jose Maria Figueres joined the Quepasa Board of Directors. [http://www.sec.gov/Archives/edgar/data/1078099/0000950134-99-005667.txt Form S-1/A] , "quepasa.com, inc.", 24 June 1999] Peterson went on to sell a stake in the Spanish language website to Sony Pictures Entertainment and Telemundo LLC. [ [http://www.sec.gov/Archives/edgar/data/1078099/0000889812-99-002064.txt Form SC-13D] , "quepasa.com, inc.", 6 July 1999] CNBC Chief Business Commentator and former FDIC Chairman L. William Seidman joined Quepasa's Board of Directors. After meeting with Peterson during an online interview at the offices of the Miami Herald, Gloria Estefan signed on as Quepasa's official spokesperson and investor. Quepasa billboards, a frequent sight in Hispanic cities across the United States, encouraged Latinos to join "El Mundo Nuevo" (the New World) online. Millions of them did.

On June 24 of 1999, Quepasa went public on the Nasdaq Stock Market. ["Quepasa.com soars following initial public offering" by Reshma Kapadia, "Reuters News", 24 June 1999] ["Reception hot for Quepasa.com: Investors bid up web site IPO in heavy trading", Russ Wiles, "The Arizona Republic", 25 June 1999] By the end of the day, Quepasa was worth $272 million. The proud young company founder was featured in live interviews on CNN and CNBC. ["Quepasa.com CEO", Jan Hopkins, "CNNfn: Capital Ideas", 24 June 1999] ["Moneyline News Hour", Lou Dobbs, "CNNfn", 24 June 1999] At age 26, Peterson had seen his net worth rise by $36 million. [http://www.hispanicmagazine.com/1999/julaug/CoverStory/] [ [http://www.hispanicmagazine.com/1999/julaug/CoverStory/ "Rocketing to Cyberspace"] , "Hispanic" Magazine (Cover Story), July-August 1999.]

A year later, Quepasa was named the most popular online destination for U.S. Hispanics, ahead of competitors Starmedia and Yahoo! Español.

Quepasa Management Controversy

Shortly after the Quepasa public offering, Peterson was ousted from the company by Gary Trujillo, the new CEO that Peterson hired to run Quepasa sixty days prior. [ [http://money.cnn.com/1999/08/02/technology/quepasa/ Quepasa fires co-founder] , "CNNfn", 2 August 1999] Speaking about the surprise management coup to the "Arizona Republic", Peterson was quoted as saying, "He (Trujillo) breached every ounce of trust I placed in his hands."

In a lawsuit filed in Maricopa County Superior Court, Peterson was accused of competing with Quepasa. [ [http://www.sec.gov/Archives/edgar/data/1078099/0001035704-99-000387.txt Form 8-K] , "quepasa.com, inc.", 2 August 1999] The lawsuit was settled 90 days later, with Quepasa paying $2.4 million to Peterson. Trujillo would later concede that the problem was a "personality issue". [http://www.hispanicbusiness.com/news/newsbyid.asp?id=456] [ [http://www.hispanicbusiness.com/news/newsbyid.asp?id=456 "1999 Media Markets Report: Clicking Online"] By Vaughn Hagerty, "Hispanic Business", 26 May 2000]

Peterson subsequently resigned from the Board of Directors, still Quepasa's largest single shareholder. ["Quepasa.com Ex-Exec Had 18% Of Stk, Highest Pay" By Rick Jurgens, "Dow Jones News Service", 2 Aug. 1999] His exit from Quepasa would "leave the company in the hands of a chief executive officer and a board of directors inexperienced in both the Internet and the technology that ran it."

Vayala Corporation

In July 2001, Peterson founded Internet search company Vayala Corporation with Brian Long Lu, son of Asian technology mogul Hong Liang Lu, and Mike Marriott. Vayala, a developer of large scale dynamic search technologies, was successful in securing venture capital financing with executives of Softbank Corp. In 2002, Vayala was acquired by Quepasa. [http://www.hispanicprwire.com/news.php?l=in&id=996&cha=12 Quepasa announces agreement to acquire Vayala Corporation"] , "Business Wire", 29 Aug. 2002.]

During this time, The Arizona Republic ran a photo of Peterson on the front cover of the Sunday edition, in a three part feature about his career. The series ran Sep. 9 and 10, 2001, concluding on September 11, 2001, the day of infamous attacks on the World Trade Center.

Quepasa Takeover and Resurrection

By 2002, Quepasa shares had declined in value under the leadership of CEO Trujillo to virtual worthlessness. In media reports, Trujillo blamed the decline in Quepasa's market value on unfavorable market conditions and the ".com bubble". [ [http://www.sec.gov/Archives/edgar/data/1078099/000091205701532473/0000912057-01-532473.txt Shareholder Letter on Form 425] , "quepasa.com, inc.", 17 September 2001] The "Chicago Tribune" wrote: "Even with Internet Winter blowing cold wind across the digital landscape, many experts were surprised to hear the death rattle of America's once super-successful Hispanic-centered Web operation, Quepasa.com." "Quepasa.com no mas?" by James Coates, "The Chicago Tribune", 1 January 2001]

Later that year, Peterson led a group of investors through a successful proxy fight and hostile takeover of Quepasa, reportedly investing millions of his own money. [http://www.sec.gov/Archives/edgar/data/1055407/000109230602000028/0001092306-02-000028.txt] [ [http://phoenix.bizjournals.com/phoenix/stories/2002/02/04/daily39.html "Quepasa.com kills merger deal"] , by Angela Gonzales, "The Business Journal of Phoenix", 6 February 2002.] ["Quepasa's board to step aside: liquidation option abandoned", by Jane Larson, "The Arizona Republic", 15 February 2002] Shortly after the takeover, Peterson was again named Chairman and Chief Executive of Quepasa. [ [http://www.sec.gov/Archives/edgar/data/1078099/000091205702017457/a2078126z8-k.txt Form 8-K] , "quepasa.com, inc.", 26 April 2002]

In January 2004, the "Business Journal of Phoenix" reported that Quepasa was "in the midst of a revival led by its creator, Jeffrey Peterson." [http://phoenix.bizjournals.com/phoenix/stories/2004/02/02/story2.html] [http://phoenix.bizjournals.com/phoenix/stories/2004/02/02/story2.html "Quepasa.com regroups after difficult times"] , by Ruben Hernandez, "The Business Journal of Phoenix", 30 January 2004.] By late 2005, Quepasa shares had again increased in value by $50 million.

In March 2006, Peterson sold 30% of Quepasa to billionaire investor Richard Scott. ["Quepasa corp. lands major Fla. investor", by Jane Larson, "The Arizona Republic", 23 March 2006]

Political Activity

Peterson, a Democrat, has been involved in political circles. His political affiliations have often been related to Hispanic interests.

In 2003, Peterson was appointed to the Arizona-Mexico Commission by Arizona Governor Janet Napolitano. ["Governor Janet Napolitano Appoints Quepasa Founder and CEO Jeffrey Peterson", "PR Newswire", 23 July 2003 (316 words)] By 2005, he had been appointed to the Executive Committee.

In 2005, Peterson was appointed to the Cross-Border transactions committee of the Arizona Department of Real Estate. [ [http://www.re.state.az.us/flashpage.html Cross-Border Transactions Committee] , "Arizona Department of Real Estate Website", 6 June 2005] The committee is focused on international Real Estate transactions between residents of Arizona and Mexico.

In 2005, Peterson was appointed as the Chair of the Technology Subcommittee of the 2006 Executive Bond Committee, by Phoenix Mayor Phil Gordon. [ [http://phoenix.gov/2006bond/index.html 2006 Bond Program] , "City of Phoenix Website", 19 December 2005] The $850 million bond initiative was approved by voters in March 2006.

Peterson financially supported the March 25, 2006 and April 10, 2006 reform marches by Immigrants.

Peterson was a co-host at a June 1, 2006 fundraiser for Arizona Senatorial Candidate Jim Pederson featuring ex-President Bill Clinton. ["Senate 2006; Former president backs Pederson at fundraiser: Clinton visits Valley", "The Hotline", 2 June 2006]

It was reported that Peterson held a fundraiser at his residence for Barack Obama featuring Democratic National Committee Chairman Howard Dean and actress Scarlett Johansson on August 21, 2008. [ [http://www.azcentral.com/community/phoenix/articles/2008/08/21/20080821abrk-obamafundraiser0821.html Scarlett Johansson in Phoenix for Obama] , "The Arizona Republic/azcentral.com", Retrieved on 2008-08-21]

Hollywood Ties

For unknown reasons, Peterson has been known to maintain ties with significant entertainment industry personalities. For example, Peterson signed Gloria Estefan as Quepasa's spokesperson and investor in 1999. Movie producer Paul Mazursky was an investor in Peterson's startup, Vayala Corp. . The co-founder of rock band Dishwalla is listed as a member of the Board of Directors in an early Quepasa Registration Statement. [ [http://www.sec.gov/Archives/edgar/data/1078099/0001035704-99-000125.txt Form S-1] , "quepasa.com, inc.", 10 March 1999] Peterson is a childhood friend of Rap Music producer Damizza. In September 2005, Quepasa announced a marketing deal with Jennifer Lopez. [ [http://www.hispanicbusiness.com/news/newsbyid.asp?id=25568 "JLO by Jennifer Lopez and Quepasa Team Up to Reach Hispanic Shoppers Online"] , "PR Newswire", 21 Sept. 2005] Even Sammy Hagar, who markets Mexican Tequila, has been reported to forge ties with Quepasa. [ [http://www.bizjournals.com/phoenix/stories/2003/08/11/daily18.html "Quepasa, Sammy Hagar forge promotional alliance"] , "The Business Journal of Phoenix", 12 August 2003]

Current Activities

Peterson is considered to be amongst the top authorities on Hispanic Internet in the United States. ["Hip to be Hispanic: American pop culture showing Latin accent", by Liz Stevens, "Fort Worth Star-Telegram", 6 November 2002, [special feature] ] He maintains in a number of IT industry advisory roles. Peterson serves on the Hispanic committee of the Interactive Advertising Bureau in New York. [ [http://www.iab.net/comm/hispanic_comm.asp Hispanic Committee] , "IAB Website", May, 2006] According to his public biography, he acts as a technology consultant to the Government of Mexico. [ [http://www.sec.gov/Archives/edgar/data/1078099/000119312506070559/d10ksb.htm Form 10-KSB] , "Quepasa Corporation", 31 March 2006]

References

"References are listed in chronological order."
* [http://www.aboutsmartmoney.net/stockwatch/index.cfm?story=199903303 "How Do You Say Internet in Spanish?"] , by Joe Hagan, Smartmoney.com, 30 March 1999.
* [http://www.baquia.com/com/legacy/10195.html "Quepasa.com, refugio de los internautas hispanos"] , by Micaela de la Maza, Baquia.com (Spanish language), 24 December 1999.
* [http://www.aol.hispanicbusiness.com/news/newsbyid.asp?id=11081 "Quepasa Announces Relationship With The British Broadcasting Corporation (BBC)"] , 12 June 2003.
* [http://www.linkedin.com/in/jeffreypeterson Jeffrey Peterson's LinkedIn profile]

;Notes

External links

* [http://www.forbes.com/finance/mktguideapps/personinfo/FromMktGuideIdPersonTearsheet.jhtml?passedMktGuideId=117397 Forbes.com] Jeffrey Peterson Profile
* [http://www.quepasa.com/ quepasa.com]