Earlier quoted context omitted.
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Nice try at being a chud, you succeeded.
Philz Coffee close to closing deal to sell to private equity firm for $145M
11–20 of 89 posts
Re: Philz Coffee close to closing deal to sell to private equity firm for $145M
#12> “All Common Stock will be canceled for no consideration and all Options will be canceled and extinguished for no consideration” How is this even legal?
Common stock holders are last in line. Only if things go well do common stock holders have a chance. And even then they might still get worked.
Re: Philz Coffee close to closing deal to sell to private equity firm for $145M
#13> “All Common Stock will be canceled for no consideration and all Options will be canceled and extinguished for no consideration” How is this even legal?
"In a liquidation, common stockholders receive whatever assets remain after creditors, bondholders, and preferred stockholders are paid." Coupled with what sounds like an already bad financial state of the company... I'm not claiming no foul play, but it looks like there is a reasonable avenue for what is happening.
Yet the board and CEO will get paid... So they're not that out of money. Just out of money enough to screw everybody but themselves.
> Philz board members, which include former CEO Phil Jaber and his son, Jacob Jaber; representatives from investment firms Summit Partners and TPG Growth; and CEO Mahesh Sadarangani will receive payouts or bonuses from the deal.
Re: Philz Coffee close to closing deal to sell to private equity firm for $145M
#14We have many more good locally owned coffee shops today.
Re: Philz Coffee close to closing deal to sell to private equity firm for $145M
#15[flagged]
Adios to your favorite brand amigo
Re: Philz Coffee close to closing deal to sell to private equity firm for $145M
#16Philz Coffee reportedly nearing a $145M PE acquisition. Just another "only in SF" story. Where your barista’s startup dream comes true, and the morning pour exits before your Series B.
Re: Philz Coffee close to closing deal to sell to private equity firm for $145M
#17[flagged]
Private Equity is basically buying a rusted-out car for $500, painting over the rust, using it for rideshares until the wheels fall off, then pushing it into the ocean. Then you use your profits to buy another rusted car. Except the car is a local coffee chain.
Re: Philz Coffee close to closing deal to sell to private equity firm for $145M
#18> “All Common Stock will be canceled for no consideration and all Options will be canceled and extinguished for no consideration” How is this even legal?
The common stockholders have voting rights...
Re: Philz Coffee close to closing deal to sell to private equity firm for $145M
#19> “All Common Stock will be canceled for no consideration and all Options will be canceled and extinguished for no consideration” How is this even legal?
"In a liquidation, common stockholders receive whatever assets remain after creditors, bondholders, and preferred stockholders are paid." Coupled with what sounds like an already bad financial state of the company... I'm not claiming no foul play, but it looks like there is a reasonable avenue for what is happening.
Investing in shares is, like most things in life, a task that requires some skill and understanding. Hence the concept of accredited investors. When you're swimming with the big boys, it pays to know the rules of the game.
Unfortunately employees getting or buying shares from their employer have little to no investment skills. Yes, it's possible for these shares to be worth something, but if the company fails, they're last in line.
It behooves tech staff, who think the road to glory is paved in stock options to get professional financial and legal (not to mention tax) advice.
Or just consider all stock offerings to be worthless. The times it isn't are a rounding error.
Re: Philz Coffee close to closing deal to sell to private equity firm for $145M
#20> Dalla worked at Philz for nine years until last year, when he was laid off. He said that many longtime employees left around the same time as the company’s culture shifted to a more profit-driven, corporate culture.
> On his way out, he said that CEO Sadarangani urged him against exercising his stock options — options that will now, barring changes to the current deal, be worth nothing. “I always assumed they would do the right thing,” Dalla said.
Wouldn't the options also be worth nothing now? So by not exercising them at least the exercise money was spared?