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Couple of points: 1)Zenefits has always known this could happen or at least they should have. You have to play nice with ADP. Because if they don't work with y
by jilberish1990 11y ago
Couple of points:
1)Zenefits has always known this could happen or at least they should have. You have to play nice with ADP. Because if they don't work with you, you are dead.
2)Zenefits has a super young CEO who doesn't know what he is doing. Where is David Sacks in all of this? Isn't he the adult supervision here? Maybe he hasn't run anything at this scale before? Maybe he and his Yammer gang don't know how benefits and healthcare work?
3)What were the VCs who invested at $4.5B thinking? Any technical due diligence would have brought this up. You had to clear this as a diligence item before you put a dollar into the company.
4)The lawsuit is a shakedown. Its time for ADP to collect its dues. Its nothing more than that. I expect ADP to extract a huge premium and then play nice with Zenefits in an out of court settlement. Everyone will have a face saving PR release after that. But isn't it interesting that this happens after they pick-up their $500M round? I have heard rumors this was going to happen in September last year. ADP waited until now. What a pest.
4)Time for Parker to go and be replaced with someone who has run billion dollar software companies before. And that's not Sacks.