Friday, April 24

Hey, Kid, Wanna Buy an Aubrey McClendon Poster?

You might recall a month or so ago when we told you about Aubrey McClendon's wine-selling venture, which netted him a cool pile of money. However, as expected, that sale did come at a price, as the wine was sold for far less than it had been valued just 12 months previous.

McClendon did, however, find a willing buyer for some of the other crap he had laying around the house another aspect of his wonderful collection: Maps and paintings.

The Times Online reports that McClendon was lucky enough to find a buyer who would pay him $12 million for an assortment of maps, paintings, etc., which turns out to be $8 million more than he paid for them.

The buyer, you ask? Chesapeake Energy. Why a natural gas company that lost $800 million needed to spend $12 million on a bunch of paintings is beyond my grasp, but I'm sure they can come up with a good explanation. (Naturally, CHK would not comment to the Times on the story).

Anyhow, I'm guessing the negotiations between Aubrey and Chesapeake went something like this:

AM: Self, how much will you pay me for these maps and paintings of Native Americans?

AM: I will pay you $5 million.

AM: No, that won't work. Try again.

AM: Okay, self, how about $10 million.

AM: That's not bad, but I can't part with them for that price. Look at the fine texture, the beautiful expression ... no, $10 million is an insult to me.

AM: Fine, $12 million, but that's my final offer to me.

AM: Done. Nice doing business with me.

Tune in tomorrow when Aubrey tries to sell his $20 million estate in Bermuda to Chesapeake as a "Research and Development Facility."


Anonymous said...

Why would any of the stakeholders of CHK sit still and allow this to happen? Is the company so clueless management-wise that they let this turd do anything that he wants?

Anonymous said...

You hand pick the board and pay them well and most will do whatever. Even supposedly quality people. It is all an insiders rewarding insiders game. Capitalism the way it works a lot of the time especially without adequate protections.

I knew Aubrey briefly in college. Shared one class. Oldest looking in a way 21 year old I ever met. And yet loved to laugh, especially sitting on his frat bench. Must have been smart as hell, hardworking but willing to do whatever too. And laugh all the way to the bank.

nuss said...

He's right - the CHK board is so tight with McClendon it's crazy. So long as he's making money for the company, it's wonderful, but at some point a combination of p.o.'d shareholders and declining revenues has to add up to something.