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Earlier investors. Ever hear of pump and dump? After you sell you’re insulated from future performance as long as you don’t commit actual fraud etc.

• JumpCrisscross 2y ago
  > Earlier investors. Ever hear of pump and dump? When did GrubHub buy early investors' shares with company cash?
  • Retric 2y ago
    Early investors had already “sold” the company well before this transaction: https://about.grubhub.com/news/grubhub-stockholders-approve-transaction-with-just-eat-takeaway-com/ https://about.grubhub.com/news/grubhub-stockholders-approve-... It was an all stock transaction, so they maintained an indirect stake but it was significantly diluted: https://en.wikipedia.org/wiki/Just_Eat_Takeaway.com https://en.wikipedia.org/wiki/Just_Eat_Takeaway.com Meanwhile Just Eat Takeaway investors got taken for a ride.
    • lotsofpulp 2y ago
      This does not seem like pump and dump: https://www.investopedia.com/terms/p/pumpanddump.asp https://www.investopedia.com/terms/p/pumpanddump.asp
      • Retric 2y ago
        The degree to which startups with unsustainable business models can be called pump and dump schemes is debated. I wasn’t suggesting they committed fraud, but they definitely put their best foot forward before that transaction and believed it was in their interest to sell. https://en.wikipedia.org/wiki/Pump_and_dump https://en.wikipedia.org/wiki/Pump_and_dump Also it’s not just unrelated 3rd parties, Enron was included because: “Enron falsely reported profits which inflated the stock price, they covered the real numbers by using questionable accounting practices. Twenty-nine Enron executives sold overvalued stock for more than a billion dollars before the company went bankrupt.”