4 ms·
What’s the game theory of rejecting life-changing, never-work-again money?
by ipnon 4y ago
What’s the game theory of rejecting life-changing, never-work-again money?
- konschubert 4y agoAlready rich, bad advice, or really believing in the moral purpose of the mission. can’t imagine the last one being the case for groupon…
- ghaff 4y agoIt likely depends a lot on how you value your outcomes. If it's mostly about the money, very comfortable complete financial independence (that you don't otherwise have) would be hard for most people to turn down. On the other hand, we'd have significantly fewer large companies built from the ground up if everyone felt that way.
- deleted 4y ago[deleted]
- bena 4y agoTheir market cap at their peak was nearly triple the offer, they probably figured they were rejecting life-changing, never-work-again money for life-changing, empire-building levels of money. In other words, they didn't see a future where they could fail.
- lisper 4y agoAt least two possibilities: 1. You could be beholden to investors who bought in at a higher valuation than the offer. 2. Never-having-to-work-again can only be measured relative to a sustainable lifestyle, so this turns on what kind of lifestyle you want. If you are content to live in a one-bedroom apartment in Topeka you need a lot less money to never-have-to-work-again than if you want a ten acre horse property in the Hamptons and a private jet. To sustain that kind of lifestyle without working takes a hell of a lot of money.
- TaylorAlexander 4y agoWell they turned down a $6B offer and then went public with a $13B valuation. If those with a lot of stock were cashing it out during the high period, they still got life changing money.