I love this story:
OMGPOP was not getting traction on Facebook, but it still had a bunch of flash developers.
Porter could have moved them around to mobile or other projects but money was running tight. To extend the company’s runway, he had to let them go.
This move bought OMGPOP another month or two of runway. It was purely a financial decision and a really tough one. The company tried to find jobs for the people who were fired.
Once Draw Something took off and it looked like we might do a deal, CEO Dan Porter hired the fired workers back ASAP.
He was literally negotiating the deal and jamming the re-hires back into payroll to make sure they were covered with hours remaining in the close. Their options kept vesting and they benefitted from the sale.
Porter didn’t have to do it. It was just the mensch thing to do.
There was one guy who used to work for OMGPOP who was facing a deadline on whether or not to exercises his options. He couldn’t decide, and Porter didn’t want him to lose out, so he hired him as a contractor to extend his vesting as well. He made money too.
Every single employee got something from the deal, even new employees who hadn’t reached their cliff. Porter made sure it happened.
That’s the way capitalism is supposed to work: we watch out for each other. And if we did more of it, we wouldn’t need the government sticking its nose into our business.
But that is the choice: practice a higher form of capitalism, or the government will impose its version on you.
- OMGPOP CEO hired back laid-off employees ahead of $210M sale to Zynga (thetechblock.com)
- Zynga buys ‘Draw Something’ maker OMGPOP for $200M (digitaltrends.com)