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Also worth pointing out that in 1999 Yahoo bought Geocities for $3.57 billion in stock. Geocities had a similar audience and premise as Yahoo - it made building

• chopsueyar 13y ago
  Let us not forget how Yahoo made Mark Cuban a billionaire. Check out this almost $6 billion redirect, http://broadcast.com http://broadcast.com. http://en.wikipedia.org/wiki/Broadcast.com http://en.wikipedia.org/wiki/Broadcast.com
• redthrowaway 13y ago
  Yahoo! bought Geocities on or about Jan 28th, when their stock was at $44. Two and a half years later, after peaking around $108, their stock was trading at $4. Hope the Geocities founders cashed out in time (and weren't locked into unvested shares). I'd hate to get a tenth of the agreed upon price for my company.
  • adventured 13y ago
    Even if they were 'locked' into the shares, they could have always collared them as Mark Cuban did (he was stuck in his Yahoo position when the market imploded, but was protected via the collar he set up with Goldman Sachs to limit the downside). http://investmentxyz.blogspot.com/2006/05/cubans-collar-anatomy-of-famous-trade.html http://investmentxyz.blogspot.com/2006/05/cubans-collar-anat...
    • sokoloff 13y ago
      In many public companies, employees (even rank and file) are prohibitted from shorting or buying puts on their shares. Some companies even prohibit selling covered calls, regardless of strike price. (A deep enough in the money call behaves somewhat like a put.) I'm a little surprised that Cuban would be locked out of selling the shares but able to enter into the collar. I'm sure it was legit (since it's well known), but still...