regarding the De Soto deal and what it says about Patrick | OSTK Message Board Posts

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Msg  44054 of 44189  at  1/6/2018 8:50:35 PM  by

evren


regarding the De Soto deal and what it says about Patrick

To summarize:
Medici/Overstock puts up $14 million and gets 50% of the company
Patrick puts up $14 million and gets 17% of the company
Mr. Hernando de Soto puts up nada and gets 33% of the company.

The Hernando part is understandable. He is putting up his expertise, putting his good name on the line, etc. But why the discrepancy between Patrick and the company? If anything, you'd expect the ratios to be switched, if you were cynical and certainly that has precedent in other CEOs.

Briefly, what I surmise is that Patrick really wants to do this. He doesn't care about it the way you care about your pennies and dollars in OSTK. Now make no mistake -- he is giving YOU the much better deal, when he could have had it the other way around. But this also gives a glimpse into how his mind works. So. Don't expect either this deal or any other deals he might make to be the epitome of how to squeeze out the last dollar. The man will do what he deems needs to be done. "Don't cry afterwards" as he said back in November. He will not sell out the shareholders but there may be other considerations.

Me, I decided long ago to hitch my horse to his cart (is that how the saying goes?) and for a while it meant I ate dog food (no fault of his and partially, mine). But some of the newcomers might not be used to these rules-of-engagement.


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