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If I recall correctly, groupon raised something like $100 million immediately after they rejected Google's offer. At the time, I remember reading that almost t

by jeremyt 14y ago

If I recall correctly, groupon raised something like $100 million immediately after they rejected Google's offer. At the time, I remember reading that almost the entirety of the investment went to buy out early investors. So it looks like Mason got the best of both worlds: he got the cash out a substantial number of shares and then hang on for the IPO upside. You also forget to mention that the Google deal was contingent upon due diligence, which now, in hindsight, may not have even successfully gone through.

joering2 14y ago
Google's stock and cash worth $6B is still better offer to than rising $100MM. Not only first is 60x more, but it is also the ultimate exit (done deal - wash your hands go to the bank to cash the check), versus "$100MM investment" is just a gas for a business to sustain it and move it forward. So still you haven't convinced me that Mason was after the money. I think he obsessively believed in the idea, which to me (personally) has no merits from business perspective, therefore from the investor/stockholder perspective this is a nightmarish position to be in, but one has to agree Mason did build something good: he gave jobs to thousands unemployed and stimulated the recessed economy by providing platform for both businesses and customers to continue selling and buying. edit: I don't believe Mason had a crystal ball to predict how future will look.
- jeremyt 14y ago
  Sorry, I was incorrect, it turns out they raised $1 billion, most of which went to the existing investors. Of course, reasonable people can disagree on this, but I think the questionable accounting standards (see: adjusted consolidated segment operating income) that they made up to hide their huge weaknesses before the IPO came straight from the top. I think Mason knew the wheels were coming off even before the Google offer, and he decided to take the guaranteed 1 billion instead of risking not making it through due diligence with Google. Then, push the accelerator to the floor, try to obfuscate the numbers as much as possible, and get away with as much money as possible before the IPO investors were left holding the bag.

by jeremyt 14y ago

joering2 14y ago

Google's stock and cash worth $6B is still better offer to than rising $100MM. Not only first is 60x more, but it is also the ultimate exit (done deal - wash your hands go to the bank to cash the check), versus "$100MM investment" is just a gas for a business to sustain it and move it forward. So still you haven't convinced me that Mason was after the money. I think he obsessively believed in the idea, which to me (personally) has no merits from business perspective, therefore from the investor/stockholder perspective this is a nightmarish position to be in, but one has to agree Mason did build something good: he gave jobs to thousands unemployed and stimulated the recessed economy by providing platform for both businesses and customers to continue selling and buying. edit: I don't believe Mason had a crystal ball to predict how future will look.

jeremyt 14y ago
Sorry, I was incorrect, it turns out they raised $1 billion, most of which went to the existing investors. Of course, reasonable people can disagree on this, but I think the questionable accounting standards (see: adjusted consolidated segment operating income) that they made up to hide their huge weaknesses before the IPO came straight from the top. I think Mason knew the wheels were coming off even before the Google offer, and he decided to take the guaranteed 1 billion instead of risking not making it through due diligence with Google. Then, push the accelerator to the floor, try to obfuscate the numbers as much as possible, and get away with as much money as possible before the IPO investors were left holding the bag.