Rippling prohibits ex-employees from selling stock to competitors Deel and Workday in tender offer

Rippling, the hot HR startup, is making waves with its giant tender offer sale, valued at over $2 billion. The company is allowing former employees to participate in the sale, but with a major catch – employees who work for specific competitors are banned from selling their stock. This exclusion has caused some internal drama, with former employees pleading with Rippling to change its policy, to no avail.

The decision to exclude ex-employees at competitors like Workday, Paylocity, and Deel was made to prevent sensitive information from falling into the hands of rivals. Rippling’s VP of communications, Bobby Whithorne, explained that the company wanted to provide liquidity to its early employees and investors, but also needed to protect its financial information from competitors.

The feud between Rippling and Deel adds another layer to the story, with sources revealing that both companies engage in marketing tactics that highlight their tech superiority over the other. Rippling’s CEO, Parker Conrad, is known for his competitive nature and has a history of building successful HR tech startups.

While the decision to exclude former employees from competitors may have financial implications for some, Rippling assures that all employees will eventually have the opportunity to sell their stock after a lockup period, once the company goes public. However, for those impacted by the exclusion, it’s not just about the money – it’s also about feeling undervalued by their former company.

As the story unfolds, it raises questions about loyalty, competition, and the complex dynamics of the tech industry. Stay tuned for more updates on Rippling’s tender offer sale and the ongoing drama surrounding its exclusion policy.