How 4 People Destroyed a $250 Million Tech Company
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Date: 2024-09-07
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Comments and reviews: 20
Nikola_Botev
Sounds like typical Balkan CEO that thinks know better and keep hiring people with a power complex in order to fell unstoppable. Here something is obvious, in this part of the world there are not the best accountant practices, if you work with professionals you will know what the company may or may not do with its budgets, verry common practice is doble accounting so there is always money going magically in the directors pockets, while the employees fight for their homes. The people are viewed as expendable material for them and the public perception is all that matters, form what we have seen they just tried to fix their image in order to close a big deal, but fall short of that and had no other strategy or plan B. To be threatened in this part of the world is pretty normal, and to find alternative ways to fix problems is what most people will try to do, rather than to search for the root of the problem, just gaslight the reporting organization that show you shortcomings and go on with your day, after all you are the biggest water block company in the world...
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Sounds like typical Balkan CEO that thinks know better and keep hiring people with a power complex in order to fell unstoppable. Here something is obvious, in this part of the world there are not the best accountant practices, if you work with professionals you will know what the company may or may not do with its budgets, verry common practice is doble accounting so there is always money going magically in the directors pockets, while the employees fight for their homes. The people are viewed as expendable material for them and the public perception is all that matters, form what we have seen they just tried to fix their image in order to close a big deal, but fall short of that and had no other strategy or plan B. To be threatened in this part of the world is pretty normal, and to find alternative ways to fix problems is what most people will try to do, rather than to search for the root of the problem, just gaslight the reporting organization that show you shortcomings and go on with your day, after all you are the biggest water block company in the world...
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weeman_com
There is a difference between profitability and liquidity. While EK may have been profitable and majorly so, how the company funds this through working capital management is key.
One of the glaring issues with EK here was the removal of the CEO and replacing him with the best friend. This seems to be, without looking at the financial data, where the key policies of working capital management changes. There seems to be a complete shift to high percentile cost of capital. They created a funding gap that they could never keep up with.
Honestly, this case would be a great example for any student doing a case study in financial management and financial ethics.
But I feel so sorry for the people who have been poorly treated by this egregiously bad stewardship of EKWB. I don't know the laws in the home country of EK, but I would hope to see some criminal charges brought over mismanagement etc
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There is a difference between profitability and liquidity. While EK may have been profitable and majorly so, how the company funds this through working capital management is key.
One of the glaring issues with EK here was the removal of the CEO and replacing him with the best friend. This seems to be, without looking at the financial data, where the key policies of working capital management changes. There seems to be a complete shift to high percentile cost of capital. They created a funding gap that they could never keep up with.
Honestly, this case would be a great example for any student doing a case study in financial management and financial ethics.
But I feel so sorry for the people who have been poorly treated by this egregiously bad stewardship of EKWB. I don't know the laws in the home country of EK, but I would hope to see some criminal charges brought over mismanagement etc
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gamersnexus
1:08:28 only way EK can be saved is....
1. New owner/manager coming in that sweeps the old management (not Konig) away.
Which also exercises some of the executive debt from the company, and opens up potential fraud investigations on the old management. In the meantime, puttinf Konig back into R&D, NPD, or future vision role, as owner.
Then it get painful - balancing the books, finding every assest, trimming the fat. Focusing on fast revenue generation, and easy wins.
2. Declare bankrupcy, and rebuild.
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1:08:28 only way EK can be saved is....
1. New owner/manager coming in that sweeps the old management (not Konig) away.
Which also exercises some of the executive debt from the company, and opens up potential fraud investigations on the old management. In the meantime, puttinf Konig back into R&D, NPD, or future vision role, as owner.
Then it get painful - balancing the books, finding every assest, trimming the fat. Focusing on fast revenue generation, and easy wins.
2. Declare bankrupcy, and rebuild.
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albertnoble211
What an amazing unbiased, fact-based analysis and report! If only the big names in media were as discreet and honest as this...
But I have to say this...
All this report was on one side while helping EK's ex-employee's, even by just name listing them, is on another completely different side...
This didn't stem from professionalism, nor it is part of the craft you do. It stemmed from being a caring human being.
Thank you, Mr. Steve. Gamers Nexus.
(Sorry for bad English).
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What an amazing unbiased, fact-based analysis and report! If only the big names in media were as discreet and honest as this...
But I have to say this...
All this report was on one side while helping EK's ex-employee's, even by just name listing them, is on another completely different side...
This didn't stem from professionalism, nor it is part of the craft you do. It stemmed from being a caring human being.
Thank you, Mr. Steve. Gamers Nexus.
(Sorry for bad English).
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pullmanization
Amazing work, GN! I truly appreciate the dedication, time, and effort your team puts into its videos. The raw, from-the-source information you collect and deliver with such transparency and accuracy is commendable. In a world where honesty and transparency are often overlooked, it’s refreshing to see your commitment to these values, never skimping on the details. If only the mainstream media were this transparent and informative, ahh wouldn't that be somethin...
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Amazing work, GN! I truly appreciate the dedication, time, and effort your team puts into its videos. The raw, from-the-source information you collect and deliver with such transparency and accuracy is commendable. In a world where honesty and transparency are often overlooked, it’s refreshing to see your commitment to these values, never skimping on the details. If only the mainstream media were this transparent and informative, ahh wouldn't that be somethin...
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TheTekknician
Kind of hoping that the industry will step up and hire the well-willing staff of EK or that some of the industry could, well you know, pay the people out of humanitary reasoning. Work has been delivered, produce has been made. You SHOULD be properly rewarded for this, without question. Edit/addendum: the What's Next-bit is exactly what I mean, kudos to the companies that did the good thing!
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Kind of hoping that the industry will step up and hire the well-willing staff of EK or that some of the industry could, well you know, pay the people out of humanitary reasoning. Work has been delivered, produce has been made. You SHOULD be properly rewarded for this, without question. Edit/addendum: the What's Next-bit is exactly what I mean, kudos to the companies that did the good thing!
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rankcolour8780
This must have taken a lot of careful, painstaking work.
Wanted to say thanks for all that effort we will never see to try and shed some light and perspective on something we would never be able to do ourselves.
Even as just a look-behind-the-curtain to show that real, innocent people have been hurt it's invaluable so they don't get swept under the rug of EKs outwards facing PR.
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This must have taken a lot of careful, painstaking work.
Wanted to say thanks for all that effort we will never see to try and shed some light and perspective on something we would never be able to do ourselves.
Even as just a look-behind-the-curtain to show that real, innocent people have been hurt it's invaluable so they don't get swept under the rug of EKs outwards facing PR.
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talananiyiyaya8912
1:56 I hate to be that guy, but if you can't pay your mortgage because of a cash-flow issue - it's really more your fault than theirs. Who in their right mind doesn't have at LEAST 6 months of emergency funds I mean ideally you have at least 5 years worth but you have to build up to that. 6 months is so easy to put together he has no-one to blame but himself...
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1:56 I hate to be that guy, but if you can't pay your mortgage because of a cash-flow issue - it's really more your fault than theirs. Who in their right mind doesn't have at LEAST 6 months of emergency funds I mean ideally you have at least 5 years worth but you have to build up to that. 6 months is so easy to put together he has no-one to blame but himself...
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TheBenzKid
Beautiful presentation Steve, I've been frustrated with what EK did to me earlier this year and this will hopefully be the nail in their coffin exposing them for who they really are as a company. I'll forward you the conversation I had with Customer Service that went on for MONTHS in one ticket, you won't believe the lies they said to me in the messages.
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Beautiful presentation Steve, I've been frustrated with what EK did to me earlier this year and this will hopefully be the nail in their coffin exposing them for who they really are as a company. I'll forward you the conversation I had with Customer Service that went on for MONTHS in one ticket, you won't believe the lies they said to me in the messages.
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Scytian1
49:40 Isn't it weird that state have to sue for due taxes Why is this a thing Why generate additional costs for no reason Where I live it works like this: If you don't pay taxes you recieve notice to pay it with deadline, if you miss deadline country will send bailiff to take your stuff with additional compenstation for work done.
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49:40 Isn't it weird that state have to sue for due taxes Why is this a thing Why generate additional costs for no reason Where I live it works like this: If you don't pay taxes you recieve notice to pay it with deadline, if you miss deadline country will send bailiff to take your stuff with additional compenstation for work done.
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xard64
Making sure that the company has enough backup resources to keep producing niche cooling components for high end gaming computers in case of an apolyptic event or collapse of the civilization while not paying their employees sounds like a plot point from Hitchhiker's Guide to the Galaxy describing a downfall of an alien race.
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Making sure that the company has enough backup resources to keep producing niche cooling components for high end gaming computers in case of an apolyptic event or collapse of the civilization while not paying their employees sounds like a plot point from Hitchhiker's Guide to the Galaxy describing a downfall of an alien race.
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SchweppeOrtolf
I plan to retire at the end of 2025 at 62 after 36 years in Telecom as a sales engineer. My wife will retire in May 2026 and she's loving life! But walking away from a good income stream and building the nest egg to living from the nest egg is a scary proposition couple with the alarming recession and CPI report
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I plan to retire at the end of 2025 at 62 after 36 years in Telecom as a sales engineer. My wife will retire in May 2026 and she's loving life! But walking away from a good income stream and building the nest egg to living from the nest egg is a scary proposition couple with the alarming recession and CPI report
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martine-e-dee
Hey, Steve et al.
I want to stop watching here for a moment to say I am really thankful you and your crew cover topics like these.
Someone needs to call this out. And, most of all, I like your approach. Data, presented neatly, with a dose of humble humor that shifts into sarcasm at times.
Keep it up!
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Hey, Steve et al.
I want to stop watching here for a moment to say I am really thankful you and your crew cover topics like these.
Someone needs to call this out. And, most of all, I like your approach. Data, presented neatly, with a dose of humble humor that shifts into sarcasm at times.
Keep it up!
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wolcek
When the wages are not being paid, there is no notice - you have stopped paying, I'm stopping working for you. You might get a notice, something along the lines due to a severe breach of contract I'm leaving your employment effective immediately. The next thing is litigation for the missing payments.
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When the wages are not being paid, there is no notice - you have stopped paying, I'm stopping working for you. You might get a notice, something along the lines due to a severe breach of contract I'm leaving your employment effective immediately. The next thing is litigation for the missing payments.
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daveb6345
Wow! What a story....EK was my first water-cooling setup of a CPU and GPU. Such a sad way to see a company who innovated and pretty much took water-cooling mainstream. Sad days indeed. Thanks for reporting on the story and being true journalists. Sticking to facts and truth.. Well done lads.
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Wow! What a story....EK was my first water-cooling setup of a CPU and GPU. Such a sad way to see a company who innovated and pretty much took water-cooling mainstream. Sad days indeed. Thanks for reporting on the story and being true journalists. Sticking to facts and truth.. Well done lads.
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4nrki
EK components have almost always formed the basis of my water cooled builds, I liked the products but don’t want to purchase them anymore based on all the issues that have come out of late.
Who should be on my list for purchasing my components from now that cover a wide range of gpu blocks
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EK components have almost always formed the basis of my water cooled builds, I liked the products but don’t want to purchase them anymore based on all the issues that have come out of late.
Who should be on my list for purchasing my components from now that cover a wide range of gpu blocks
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bkminchilog1
Soif the founder had listened to the executive they fired instead of the man whose been draining his bank accounts on vacation for 4 years, this company would be fine.
This is why intelligence is more important than loyalty. Reward intelligence and integrity first. Loyalty second.
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Soif the founder had listened to the executive they fired instead of the man whose been draining his bank accounts on vacation for 4 years, this company would be fine.
This is why intelligence is more important than loyalty. Reward intelligence and integrity first. Loyalty second.
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WolvenSpectre
I am getting a strong sense that they are saying The jig is up, it is time we take a page out of private equity's playbook and rob the company blind, and if we straighten it up and get the company back in good graces fine, but we'll have our retirements by then.
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I am getting a strong sense that they are saying The jig is up, it is time we take a page out of private equity's playbook and rob the company blind, and if we straighten it up and get the company back in good graces fine, but we'll have our retirements by then.
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Daniel_Schmaniel
I once heard a very successful businessman say the faster a company grows the faster it falls. A strong company doesn't seek fast growth but stable growth. Too many modern businesses care too much about the short-term and not enough about the long term.
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I once heard a very successful businessman say the faster a company grows the faster it falls. A strong company doesn't seek fast growth but stable growth. Too many modern businesses care too much about the short-term and not enough about the long term.
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nylarnameless1759
Got the original coaster pack....two on my computer desk right now! one for a cup, one for my arduino R4 that plays Game of Life on the LEDS. A third next to my tower as a spot for my Raspberry Pi 4B Kali Machine. AM BUYING THE NEW ONES WANT FANNNN
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Got the original coaster pack....two on my computer desk right now! one for a cup, one for my arduino R4 that plays Game of Life on the LEDS. A third next to my tower as a spot for my Raspberry Pi 4B Kali Machine. AM BUYING THE NEW ONES WANT FANNNN
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