Zenefits fire sale?

Dec 24, 2021 28 Comments

TriNet has a market cap of $6.2B.

Zenefits was worth $4.5B in 2017.

Is the acquisition price over $1B? Or less?

Safe to say this is a fire sale? Did zenefits employees (current and ex) make anything out of this or just the VCs took the money and left nothing for employees given liquidation preferences?
#tech #zenefits #trinet #startup #acquisition #M&A
https://www.prnewswire.com/news-releases/trinet-announces-definitive-agreement-to-acquire-zenefits-301450539.html

Zenefits TriNet
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 TOP 28 Comments
  • Hi. We were told yada yada that Parker structured the stock such that employees were never going to get much, after what was left after what the VCs got. I don’t know how much truth there is to that. Definitely after FP ‘bought’ us, it was devalued to basically nothing. Some employees got new stock though.
    Jan 5 3
    • I think it’s also fair to say that Parker’s missteps led us to where we needed FP to stay open. I respect his hutzpah and all, but he was all about the value-pump. He pulled out $10M for himself even while the company was on an unsustainable spending frenzy.
      Jan 5
    • Wayfair
      cncd81

      Go to company page Wayfair

      cncd81
      Would employees be awarded shares of TriNet going forward?
      Jan 28
  • I'm getting close to 25 cents after working there for many years. It's 0.00001$ per share.
    Jan 14 4
  • So basically leadership sold Zenefits to PE first so that they don’t have to payout employees and then sold to Trinet. Francisco partners is just a proxy PE company, which was not interested in the company growth from day one - they just wanted to get cut of transaction.
    Dec 26, 2021 3
    • This mentality of investors and employees has to fixed. If you start treating every employee as a partner in the firm then every company will produce best of outcomes. Start treating business as people than numbers.
      Dec 26, 2021
    • New
      hugh jarse

      New

      hugh jarse
      not true. don’t hate the player hate the game. VC is a winner take all business, period.

      your argument amounts to, why can’t we all just get along. nice thought but it’s not the world we live in.
      Dec 26, 2021
  • Did anyone here even make 1 dollar from their RSUs?
    Jan 13 2
    • Carbon
      jumptojump

      Go to company page Carbon

      jumptojump
      did you get a copy of the merger agreement??
      Jan 14
    • Pursuant to the Merger Agreement, except for cancelled shares, each share of YourPeople, Inc. common stock, par value $0.00001 per share (including vested and unvested restricted stock); founders preferred stock, par value $0.001 per share; and restricted stock units held by an Effective Time Holder and outstanding immediately prior to the effective time of the Merger shall be exchanged for cash and shares of TriNet Group, Inc. common stock, par value of $0.000025 per share (assuming such Effective Time Holder is an accredited investor); provided, however, that (i) holders of restricted stock units and unvested restricted stock will receive cash in lieu of stock as consideration for such equity, and (ii) amounts in respect of unvested restricted stock will be payable subject to certain service-based vesting conditions, in each case, as set forth in the Merger Agreement.
      Jan 16
  • Stock is basically worth zero to all current / past employees now. Has to be one of the biggest unicorn busts in history
    Jan 4 0