How private equity kills companies and communities

Published: Thursday, May 29, 2025 at 2:00 pm

Private Equity's Impact: A Deep Dive into "Bad Company"

The Verge's Decoder podcast recently hosted a discussion with Megan Greenwell, former editor at Wired and Deadspin, about her new book, "Bad Company: Private Equity and the Death of the American Dream," releasing June 10th. The episode, hosted by Nilay Patel, delves into the often-hidden world of private equity and its far-reaching consequences.

Greenwell's book examines how private equity firms, which buy and restructure companies, impact various sectors, including retail, media, housing, and healthcare. Her personal experience, stemming from Deadspin's acquisition by Great Hill Partners, highlighted the disconnect between private equity's financial goals and the operational realities of the acquired companies. The episode explores how these firms often prioritize short-term profits, potentially leading to negative outcomes for employees, consumers, and communities.

The discussion also touches on the historical roots of private equity, tracing its connections to the New York City real estate world and figures like Donald Trump. Furthermore, the podcast differentiates private equity from venture capital, highlighting their distinct approaches and challenges. The episode builds on Decoder's previous exploration of private equity, referencing a popular 2023 episode with Brendan Ballou, author of "Plunder."

The conversation emphasizes the pervasive influence of private equity across the American economy and its impact on everyday life. The episode promises to shed light on how financial incentives have come to dominate various aspects of American society, even reaching the highest levels of government.

BNN's Perspective: While the podcast highlights valid concerns about the potential negative impacts of private equity, it's crucial to acknowledge that these firms can also play a role in revitalizing struggling businesses. A balanced perspective should consider both the risks and potential benefits of private equity investments, recognizing that the industry is complex and not monolithic.

Keywords: private equity, Bad Company, Megan Greenwell, Decoder, Nilay Patel, American Dream, Deadspin, Great Hill Partners, finance, healthcare, retail, media, housing, venture capital, Brendan Ballou, Plunder, business, economy, podcast, The Verge

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