It doesn't sound like it to me. There's a reason why more responsibly run companies don't blow money on crap like this.
There were similar stories during the dot com bubble, companies and people with more money than sense wasting it. Going on hiring sprees, building opulent abominations of offices, buying toys they don't use, overpaying for celebrity/rockstar employees.
Might be easier to bush off as no big deal when profit (or VC money) keeps pouring in, then when the wind changes you end up closing all your offices and laying off thousands of people.