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How the Twinkie Made the Superrich Even Richer
Article

How the Twinkie Made the Superrich Even Richer

Michael Corkery and Ben Protess
The New York Times, 2016
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Editorial Rating

8

Qualities

  • Innovative
  • Overview
  • Engaging

Recommendation

Private equity has a proven track record when it comes to making money, but the jury is still out on how these firms’ dealings affect workers. In this in-depth article for The New York Times, reporters Michael Corkery and Ben Protess offer a detailed analysis of private equity’s involvement in the 2013 revival of the Hostess snack brand. They present a nuanced picture of private equity’s complicated relationship with workers and show how private equity executives became America’s wealthiest individuals. getAbstract recommends this article to those keen to learn about how the tentacles of private equity affect everyday life.

Summary

On its surface, the way private equity firms generate profits appears straightforward: The firms purchase the debt of failing companies or buy the companies outright. Then, once they have restructured the businesses, they sell them for a profit. It seems like everyone wins: Workers stay employed, pension plans – private equity’s largest investors – remain funded and fund executives receive rewards for their risks. Still, one of the more famous private equity deals in recent times – involving the Hostess snack company – reveals the degree to which private equity’s executives achieved financial ...

About the Authors

Michael Corkery and Ben Protess are reporters at The New York Times.

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