Peter Elkind: The wrath of Steve Jobs

[geek]

At 52 years old, validated by Apple's astonishing comeback, tempered by a brush with a cancer that's normally fatal, the late Steve Jobs is assumed to be mature, even mellow. But, of course, deep down, he's still an inveterate control freak. What's the evidence? Study the early reviews of the iPhone, scheduled to come out on Wednesday. The Journal's Walt Mossberg has already disclosed, or boasted, that he's been playing with Apple's new wonderphone. Expect to see informed reviews, also, from David Pogue of the New York Times, Ed Baig of USA Today, and Steven Levy of Newsweek. But don't be surprised if Fortune, the nation's premier business magazine, has to scramble to assemble coverage of the hotly anticipated cellphone device. Why would the Time Inc magazine be in such disfavor with the high priest of the tech industry? It's all to do with Peter Elkind.Here's the grapevine explanation: Fortune has commissioned an exposé of the options scandal from which the Apple founder has still not fully emerged. It's a long-running and complicated story: Steve Jobs did benefit from the manipulation of the prices of executive options, but only indirectly; the Securities and Exchange Commission charged two underlings; and Apple took that as some sort of vindication of the Cupertino company's chief exec. So, on the surface, too messy to make a story damaging to the Apple boss, particularly when he's riding so high.
But Jobs' options tangle, the last thing he needs right now, is still not over. If anyone can dig out some smoking gun that implicates Jobs it's Peter Elkind, the investigative business writer assigned to the project. Elkind, an unlikely nemesis, specializes in takedowns of visionary leaders who stretch too far. He, with Bethany McLean, led Fortune's coverage of Enron's financial collapse. No wonder Apple is spooked by Elkind's assignment. The book he co-wrote on the biggest financial scandal of the last cycle carries an ominous title: Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron.
We actually pinged Fortune for a response to this story, because it's a particularly juicy one. (Don't expect Valleywag to make that a habit: we usually give people a chance to respond, and abuse us, on the site, after the obnoxious item goes up.) Fortune's Adam Lashinsky referred us to Danielle Perissi, flack for Time Inc. "We don't comment on stories we are working on. And not aware of the "blacklist" you are referring to - especially since FORTUNE is set to receive an iPhone for review." So Fortune doesn't have one yet: baby, the whole world is "set" to receive an iPhone.
Let this be a reminder to journalists, everywhere: you really don't want to provoke the wrath of Steve Jobs, particularly when he's about to descend from the mountain, bearing tablets. And all for what? A story about corporate corruption -- boring! -- an issue about which the iPhone-worshipping masses couldn't care less.
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