I'm all for letting a company die out, but jesus it looks like there were a ton of shady business dealings, hidden partners, reverse mergers and other sketchy moves.
This article should, at the very least, be a warning sign to anybody who thinks about investing with, or going to work for any of the people associated with any of the firms listed in the article.
The SEC public disclosures are hilariously blunt on how just one of a handful autonomous rulers could have a spontaneous change of heart that would effectively tank the company.
It sure is interesting how they extended their tentacles into as many other companies and projects as possible (SBF even approached Elon about financing the Twitter acquisition) while knowing they were financing these deals with customer deposits, before blowing it up in the most spectacular way possible…
I can’t imagine a series of actions that would be more destructive to the industry. The actions don’t make sense unless they were taken to maximize the potential fallout.
The deep regulatory and political connections are also interesting…
Company 1: The company went bankrupt, founder renamed the company, started a new company with the same name as the original, transferred some assets for pennies on the dollar. It later went public, but collapsed in the dot-com crash.
Company 2: Company raised $50 million during the dot-com boom. After 5 or so years, it still did not have much revenue to speak of. After several down rounds, it was eventually was sold to a major corporation for pennies on the dollar. All common stock was worthless.
Company 3: Still working on it. There have been several down rounds. All employees got their options re-issued at the lower price after a key employee threatened to walk...
Nooo... This is a bad, bad day! It would really interesting to learn more about this company and how it survived for 15 years in a very competitive market.
One great company after another destroyed by financial shenanigans. Avaya & Silver Lake Partners is another that comes to mind, but there have been many.
Being evil. This is the group that invested in LinkedIn, PayPal and now recently Facebook after the scandals. If they went out of business, all I would say is, lol
So basically everyone got screwed except the shareholders, who made out with an overpriced sale to Elon.
The actual company got pretty f'ed because it got a loan to buy itself out. Then it had to lay off most of its workers because it got a loan to buy itself out.
> Company 1: The company went bankrupt, founder renamed the company, started a new company with the same name as the original, transferred some assets for pennies on the dollar. It later went public, but collapsed in the dot-com crash.
Is that legal? It looks like the CEO of the company willingly harmed the company's interest to enrich himself, which is basically fraud.
SNEED
(formerly m00ts)
Seriously though, we know somehow someway this isn't going to end well. It's interesting to just watch it go down.
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