Sponsored by Forest Grove Economic Development
Home Must Reads High-powered investors dump Group stock

High-powered investors dump Group stock

| Print |  Email
Must Reads
Monday, August 20, 2012

As you may recall, Groupon did a highly unusual stock deal about 10 months before its November 2011 IPO.

The company allowed its early investors to cash out big, selling $946 million-worth of stock to a host of new investors who were eager to get in on one of the fastest-growing companies in history.

This deal was a bonanza for early Groupon insiders and investors, including Chairman Eric Lefkovsky, who banked $318 million (to go with an earlier $67 million cash-out) and Andrew Mason, who took out a total of $31 million in that round and a prior round.

Importantly, the investors who bought this pre-IPO round weren't idiots. Rather, they were a who's who of smart money.

That pre-IPO cash-out was done at a split-adjusted share price of $7.90.

About 10 months later, Groupon went public at $20 a share. The stock soared over $30 the first day, and then settled in the low $20s. Then it began a slide that culminated in last week's close of $4.75, a shocking 75%+ below the IPO price.

Last week's closing price is also well below the price Groupon's last round of private investors paid in December 2010--almost 40% below it, in fact.

So the smart money that bought in that round is looking kind of dumb.

 

Read more in today's Business Insider.

 

More Articles

Private liberal arts education: superior outcomes, competitive price

Contributed Blogs
Tuesday, August 26, 2014
0826 thumb collegemoneyBY DEBRA RINGOLD | OP-ED CONTRIBUTOR

Why has six years become an acceptable investment in public undergraduate education that over-promises and underperforms?


Read more...

Register for 100 Best Companies survey

News
Wednesday, August 20, 2014
OBM-100-best-logo-2015 150pxwBy Kim Moore | OB Editor

The 2015 survey launched this week. It is open to for-profit private and public companies that have at least 15 full- or part-time employees in Oregon.


Read more...

Why I became an Oregon angel investor

Guest Blog
Monday, July 14, 2014
AngelInvestBY TERRY "STARBUCKER" ST. MARIE

I really didn’t know that much about angel investing, but I did know a lot about the entrepreneurial spirit.


Read more...

Is this employee right?

Contributed Blogs
Wednesday, August 13, 2014
081314 thumb employeefeelingsBY TOM COX | OB BLOGGER

When I say, “Your Employee is Always Right,” I do not mean “right about the facts,” but rather “right about how they feel” and “right about how they want to be led.”


Read more...

OB Video: Dress for Success

News
Wednesday, July 02, 2014
DFSOBY JESSICA RIDGWAY | OB WEB EDITOR

Dress for Success Oregon promotes the economic independence of disadvantaged women by providing professional attire, a network of support and career development tools.


Read more...

Interview: Dr. Mark Goulston

Contributed Blogs
Thursday, July 10, 2014
JustListenBY TOM COX | OB BLOGGER

Tom Cox interviews Dr. Mark Goulston, author of Just Listen, Discover the Secret to Getting Through to Absolutely Anyone.


Read more...

Managing family assets: The importance of planning ahead

News
Friday, August 22, 2014
Unknown-1BY CLIFF HOCKLEY |  OB GUEST CONTRIBUTOR

When business intersects with family, a host of  situations can arise. Without a clear vision and careful planning, hard-earned investments can become stressful burdens.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS