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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Lucretius who started this subject2/6/2002 8:26:53 PM
From: KeepItSimple  Read Replies (2) of 436258
 
The next enronitis shoe to drop:

Today the news is that many of the small offshore partnerships were "purchased" by Enron for tens of millions of dollars, even when the only assets those partnerships had were a few thousand bucks in cash paid in by Enron execs!

One guy invested $5,000 and got 12 million a few weeks later when Enron bought the partnership. Another enron exec invested $1,800 and got 6 million 2 months later when
Enron bought another partnership.

These partnerships had no assets, no employees, no NOTHING except an enron exec who invested a few bucks.

Does any of this sound familiar? It happened every day of the week during the dot.com boom when Amazon and other sequoia/softbank/sand hill VC-backed publicly traded companies would buy tiny unknown companies with few employees and no sales/profits. At the time, I found two companies that Amazon bought- JUNGLEE & PLANETALL who were purchased for hundreds of millions of dollars (in stock) by amazon that had absolutely no products at ALL, but *did* receive quick infusions of investment cash from the same VCs that backed Amazon. These tiny investments allowed VCs who controlled the board of amazon to "purchase" companies that they controlled, and walk away with hundreds of millions of dollars!

Half the purchases during the dot.com era that large public internet companies made were clearly just methods of transferring money from public investors to friends of insiders.

This is gonna be bigger than Enron if anyone ever bothers to dig deeply.
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