3 ms·
This happened to me back in the 90's. Company 1: The company went bankrupt, founder renamed the company, started a new company with the same name as the origin
by icedchai 6y ago
This happened to me back in the 90's.
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...
- killtimeatwork 6y ago> 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.
- icedchai 6y agoMy understanding is that it was done in a legal manner. The majority of the investors were "friends" and had to give sign off. They got a smaller stake in the new venture and promise of larger returns, etc.