The US Federal Government spends twice as much as it collects in taxes, borrowing the difference. The mounting debt requires that we set interest rates as low as possible to keep interest payments feasible.
For depositors, this means you can't make money in the bank. And the stock markets gains look good on paper but inflation erases much of the real value. So people with giant pools of capital have learned to make their own fortunes by buying companies directly. This is "private equity."
Their playbook once they do so is limited to a few extractive techniques. They might buy a few leading competitors in an industry and merge them, double/triple the rates, and shutdown the associated 3rd party services "marketplace" and force people to buy only their services. Or start charging for API access that previously offered to all customers for free.
They might buy a service provider who charges reasonable rates, double/triple the rates, then sell them off again 14 months later.
They might buy a solvent company, saddle it with debt, and sell it off.
These private equity gains drive everyday costs for consumers like me. In a recent 24 months period, every monthly bill I pay went up $$$ as PE firms took over my service providers.
We could slow PE (and inflation in general) by raising interest rates, incentivizing deposits and increasing the cost of capital. But this would require national fiscal responsibility, and nobody wants that. Additionally, we could choose to bootstrap companies with sustainable multigeneration succession planning instead of sudden financialized cash outs. But after tirelessly building a company for a decade most founders would rather cash out so someone else can begin to abuse their customers. "I deserve this."
their point, if I distill it correctly, is that Meehan comes with an agenda of enshittification. Given the events we're talking here... it's not that far-fetched.
It doesn’t matter because they don’t control anything tangible - which is the point. Just like the 501(c)3 that openAI was.
Read for knowledge:
Bernadette Meehan became CEO on January 20, 2026, recruited from a career that included Wall Street stints at J.P. Morgan and Lehman Brothers, a spokesperson role at the National Security Council, senior leadership at the Obama Foundation, and most recently a posting as U.S. Ambassador to Chile. Four months in, the longtime lead developer of MediaWiki is fired, the team that personifies community service is dissolved, and the union is in open confrontation.
This person is a loyal PE capitalist and that’s the whole point.
The US Federal Government spends twice as much as it collects in taxes, borrowing the difference. The mounting debt requires that we set interest rates as low as possible to keep interest payments feasible.
For depositors, this means you can't make money in the bank. And the stock markets gains look good on paper but inflation erases much of the real value. So people with giant pools of capital have learned to make their own fortunes by buying companies directly. This is "private equity."
Their playbook once they do so is limited to a few extractive techniques. They might buy a few leading competitors in an industry and merge them, double/triple the rates, and shutdown the associated 3rd party services "marketplace" and force people to buy only their services. Or start charging for API access that previously offered to all customers for free.
They might buy a service provider who charges reasonable rates, double/triple the rates, then sell them off again 14 months later.
They might buy a solvent company, saddle it with debt, and sell it off.
These private equity gains drive everyday costs for consumers like me. In a recent 24 months period, every monthly bill I pay went up $$$ as PE firms took over my service providers.
We could slow PE (and inflation in general) by raising interest rates, incentivizing deposits and increasing the cost of capital. But this would require national fiscal responsibility, and nobody wants that. Additionally, we could choose to bootstrap companies with sustainable multigeneration succession planning instead of sudden financialized cash outs. But after tirelessly building a company for a decade most founders would rather cash out so someone else can begin to abuse their customers. "I deserve this."
I think the question was intended more as "what does PE have to do with Wikimedia", not "why is PE a problem".
and which part of this makes any sense at all when applied to the wikimedia foundation
their point, if I distill it correctly, is that Meehan comes with an agenda of enshittification. Given the events we're talking here... it's not that far-fetched.
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Individual people who own shares of an organization that they do not produce value for, as a wage based laborer
and who exactly owns shares of the 501(c)3 wikimedia foundation?
It doesn’t matter because they don’t control anything tangible - which is the point. Just like the 501(c)3 that openAI was.
Read for knowledge:
Bernadette Meehan became CEO on January 20, 2026, recruited from a career that included Wall Street stints at J.P. Morgan and Lehman Brothers, a spokesperson role at the National Security Council, senior leadership at the Obama Foundation, and most recently a posting as U.S. Ambassador to Chile. Four months in, the longtime lead developer of MediaWiki is fired, the team that personifies community service is dissolved, and the union is in open confrontation.
This person is a loyal PE capitalist and that’s the whole point.
2 replies →