Caveat Emptor. Eero is screwed?

#1

Eero sold for less than VC investment and debts. Most employees washed out, execs got big bonus to stay on. Company is screwed- employees are screwed. Customers?

Needless to say, I am no longer recommending them, even if they still do advertise heavily on some of my favorite podcasts.

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#2

I bought an Eero system last summer (three full sized units, not the beacons). This story does not inspire me to recommend the system to others.

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#3

Reading the story, the acquisition definitely sucks if you owned Eero stock. However, if the company was as cash strapped as the article implies, the acquisition may be the best possible outcome if you own Eero hardware. Amazon has the resources to keep the ecosystem alive, whereas Eero as an independent company may not have.

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#4

I can’t say I was in the market before I heard this news. I agree with the analysis of Eero as a product that has been surpassed in some ways by its competitors for most buyers, so I wouldn’t have recommended it anyway. But I can see how if one of the purchase or recommendation reasons was to participate in a story about an ethical company, that would change after reading this—at minimum I would have liked to have seen some assistance for employees who heavily invested in the company with their option exercises. (That said, I think if any employee was seriously hurt by exercising options, we would have read specifics.)

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#5

The problem is the legal, but unethical terms that enriched a few stock holders/founders as the expense of everyone else.

I’ve been involved in several startups, not all that have gone well. With the “down rounds” and less-than-stellar exits, the one thing in common was that everyone was treated equally.

When employees didn’t make much on the stock options, the executives didn’t either. There wasn’t one group getting wealthy while the others were left high and dry.

There is certainly risk with any venture or investor financed company, but one expects to be treated fairly, not exploited for a few to gain on the backs of everyone else.

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