This is the story of a tech startup that was purchased by the free-falling Blackberry. Valued at $1.1 billion privately, the company sold for $425 million.
So who got raped in the deal? The employees, of course!
Just how punishing that price was became clear in late September. In an investor document about the sale that was distributed to shareholders, employees discovered their Good stock was valued at 44 cents a share, down from $4.32 a year earlier. In contrast, preferred stock owned by Good’s venture capitalists was worth almost seven times as much, more than $3 a share. The paperwork also showed that Good’s board had turned down an $825 million cash offer just six months earlier, in March.
For some employees, it meant that their shares were practically worthless. Even worse, they had paid taxes on the stock based on the higher value.
So as always, instead of KY, the investor class uses sand when the fuck us.
In Good’s case, the six investors on the board had preferred shares worth a combined $125 million. After the sale to BlackBerry, Ms. Wyatt, who has since left the company, took home $4 million, as well as a $1.9 million severance payment, according to investor documents.
So at least women are just as capable of exploiting their underlings for profit as men, so there's progress being made there...
merry fucking christmas, bitch. [editor's note: there are many other words I'd like to call this person, but we'll leave it at bitch]
At an all-hands company meeting in June, Ms. Wyatt again said Good was spending responsibly. Thanks to the cash from a recent $26 million legal settlement, she added, the company had “a ton of options,” including an I.P.O., according to a video of the gathering.
Companies that buy employee shares offered some Good workers about $3 a share for their stock in the first half of the year. But based on their belief in the company’s robust health, the employees refused. Others bought Good common stock in August, when it was valued at $3.34 a share, according to individual employee tax documents reviewed by The New York Times. Employees had little idea that an outside appraisal firm had valued Good at $434 million and the common stock at about 88 cents a share as of June 30, according to investor documents and legal filings.
So she LIED to her employees about the health of the company, and that breach of fiduciary responsibility led to their decisions not to sell.
It is unconscionable that the investor class, who are literally leaches on the rest of us, reaping the rewards ahead of the employees, who created the value to begin with.