4 ms·

Was earn.com acquired at a higher than fair valuation? If so the shareholders of coinbase.com should sue.

• andrewprock 7y ago
  It's possible it was "sold at a loss" but the early investors made money. e.g. by investment round: A: $1m for a $10m valuation B: $5m for a $40m valuation C: $12m for a $100m valuation A "fire sale" of $15m would yield a profit for Series A investors, a probable loss for B, and a certain loss for C.
  • gaogao 7y ago
    Liquidation preference for later rounds might muck up that calculation.
  • ska 7y ago
    Or if they were already in financial trouble and C came in with 1.x liquidation preference, they get everything (or near it)
    • user5994461 7y ago
      But A and B would have liquidation preference too, so how is the money split?
      • ska 7y ago
        A and B may not have it at all, and anyway if C pushed a hard bargain, theirs will come first. At any rate, the devil is very much in the details.
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