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Not mismanagement if you made a lot of shareholder value with the buybacks.
by mlinhares 1y ago
Not mismanagement if you made a lot of shareholder value with the buybacks.
- ricardobeat 1y agoGenerating shareholder value while wiping out twenty thousand jobs, killing the business and eventually going bankrupt. The epitome of business success
- musicale 1y agoI think that's "extracting" shareholder value. Like extracting value from a patient in the form of removable organs.
- bcrosby95 1y agoIn theory extracting multiple organs from one person will save more people than it kills. But that isn't really true when you're talking about plays like this. More people are made worse off than better.
- jordanb 1y agoLiterally the phrase is "unlocking brand value" "brand value" -> trust people have in the company/product "unlocking" -> betraying that trust in a bustout
- bawolff 1y agoBut they didn't, as evidenced by the bankruptcy. The whole, everything stupid a company does is "increasing shareholder value" meme is annoying. Not every dumb action a company does can be explained that way.
- Supermancho 1y ago> But they didn't, as evidenced by the bankruptcy. When shareholder value is used as short term and long term interchangeably, both can be true. Short term value at the cost of long term value.
- mlinhares 1y agoYup, the buybacks were made to produce short term shareholder value, those who sold and took their bags won, those who stayed got screwed, classic private equity playbook.
- vkou 1y agoPlenty of dumb decisions burn through long-term value while generating negative-to-near-zero short-term value. They do sometimes (but not always) generate plenty of value for the people making those decisions.
- nothercastle 1y agoIt can just not for all shareholders. Some shareholders are more important than others