Confused. Monotype is PE-owned. Buying companies on the cheap and selling is classic PE logic. Monotype annual revenues were less than 1/10th the acquisition cost. Hoefler&Co had 5 employees and gross revenue was just over 625. Even if they sold for 10 times revenue, that's only $6M for 32 years of work.
Purportedly:
1. Hoefler started the company in 1989.
2. After 10 years, in 1999, Frere-Jones joined—as an employee. No way someone puts in 10 years and makes someone else 50/50 unless they put up capital.
3. After 13 years, in 2002, Hoefler's wife became CEO. Likely that Hoefler and her were the largest shareholders.
4. After 16 years, in 2005, rebranded to include Frere-Jones. Pretty generous!
5. After 9 years rebranded and 15 years working together, in 2014, Frere-Jones sues Hoefler for $20M, claiming the fonts were worth $3M each. They settle after nine months. Frere-Jones immediately starts his own company.
6. After 32 years, in 2021, Hoefler sells and decides he wants to do something different.
How can you say he made out like a bandit? I would understand saying that if he started the company with Frere-Jones, sold for hundreds of millions in four years, and managed to keep all of it for himself.
Frere-Jones designed most of the fonts that put HFJ the map and made them what they are today. Including Gotham that was used in Obama's campaign and shoot this foundry to stardom. All based on a handshake agreement between H and FJ made when they started working together and an understanding they were equal partners.
Frere-Jones DID put up capital… intellectual capital. He transferred the rights to famous typefaces he had designed, including Whitney, to the company with the understanding that he would be full partner.
Hoefler shafted F-J so hard it’s unbelievable. The foundry’s reputation was built on Gotham which F-J designed. There’s no other way to see it.
Hey, if the The Lord of the Rings movies can lose money, as New Line asserted to Peter Jackson when they denied him royalties, then a New York type foundry can surely operate for a couple decades on just a little more than a half million.
Purportedly: 1. Hoefler started the company in 1989. 2. After 10 years, in 1999, Frere-Jones joined—as an employee. No way someone puts in 10 years and makes someone else 50/50 unless they put up capital. 3. After 13 years, in 2002, Hoefler's wife became CEO. Likely that Hoefler and her were the largest shareholders. 4. After 16 years, in 2005, rebranded to include Frere-Jones. Pretty generous! 5. After 9 years rebranded and 15 years working together, in 2014, Frere-Jones sues Hoefler for $20M, claiming the fonts were worth $3M each. They settle after nine months. Frere-Jones immediately starts his own company. 6. After 32 years, in 2021, Hoefler sells and decides he wants to do something different.
How can you say he made out like a bandit? I would understand saying that if he started the company with Frere-Jones, sold for hundreds of millions in four years, and managed to keep all of it for himself.