3 ms·
A couple thoughts here: 1) As the article states, Facebook has fiduciary duty to Facebook and nobody else. 2) Same with the VCs. 3) This isn't unique to high te
by mathattack 15y ago
A couple thoughts here:
1) As the article states, Facebook has fiduciary duty to Facebook and nobody else.
2) Same with the VCs.
3) This isn't unique to high tech. Sometimes a CEO will accept a bad merger price to become the CEO of a larger firm. This is called the principal-agent problem and is why boards should be involved in all M and A.
4) Unless there are competing bids it is hard to prove a failure of fiduciary duty. In the end it's reputation. If the Angel and VC feel screwed then the execs won't get money again. If not it is ok. It is lie Prisoners Dilemna - you play nice in a repeated game.