Tech

An Investor In PrimeSense Threatens The Person That Leaked It Was About To Be Bought By Apple

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Izhar Shay Canaan Partners
Izhar Shay, Canaan Partners  Canaan Partners

Yesterday, news broke that Apple is reportedly negotiating a deal to buy Israeli company PrimeSense for $345 million.

PrimeSense's big claim to fame is that it helped Microsoft create Kinect.

The story went viral and shortly after, a PrimeSense investor inadvertently confirmed that talks were taking place by writing a post on Facebook threatening to expose the leaker.

The post was written in Hebrew by Izhar Shay, a general partner at venture capital firm Canaan Partners. Shay is an investor in PrimeSense.

Shay essentially said the leak could have killed the deal but didn't. Here's our translation:

Hello to you Dear Leaker,

I was sitting and thinking and I made phone calls and I guess I know pretty certainly who you are. Not only me. There are quite a few other good people who know. What now? Should we file a complaint? Should we make your name known? And what about the motive? We have a not-bad guess for those of us who know who you are.

I am wishing you from the bottom of my heart, that one day, your name will be known among many people as the one who has almost succeeded in ruining the incomes of hundreds of people and their families. Here’s hoping that "almost" will stay "almost."

Replies to the comment confirmed that he was talking about PrimeSense. Another Israeli VC, Roi Carthy of Initial Capital, also replied that he was trying to track down the person, writing:  "I've been trying to find out as well ... Trying to connect dots across several leaks this year. Huge risk to deals."

The rumors that Apple was interested in PrimeSense have been circulating since the summer. On Sunday, PrimeSense issued a statement that was somewhere between a weak denial and a no comment, calling the news report a "recycled rumor."

Business Insider has since heard from several sources in Israel who insist that it's not a rumor and the deal was close, at least before the story broke by Israeli financial news site Calcalist.

Apple is a notoriously tight-lipped, secretive company. A leak like this during negotiations couldn't be good for negotiations.

PrimeSense has raised $85 million from investors, reports Avi Schneider at Israeli tech pub Geektime.com. But, in 2011, Microsoft opted not to renew its contract with PrimeSense for Kinect. Microsoft instead bought a competitor, Canesta.

That badly hurt PrimeSense, sparking layoffs, Geektime's Schneider reported. However, the company survived enough to build a product called Capri, a small device that brings 3D gesture tech to devices ranging from televisions to smartphones.

Apple reportedly wants PrimeSense to bring a gesture-controlled interface to Apple TV and other living room devices.

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.