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Wonder is acquiring Grubhub

(about.grubhub.com)
146 points endtwist | 2 comments | 13 Nov 24 19:12 UTC | HN request time: 0.469s | source
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jaymzcampbell ◴[13 Nov 24 19:21 UTC] No.42129011[source]▶
Mentions the $650mln they'll pay Just Eat for it, neglects the fact Just Eat paid $7.3bln. Quite the write down. And in just 4 years.
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popcalc ◴[13 Nov 24 19:24 UTC] No.42129050[source]▶
Where did all the money go?
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Retric ◴[13 Nov 24 19:29 UTC] No.42129086[source]▶
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.
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JumpCrisscross ◴[13 Nov 24 20:33 UTC] No.42129677[source]▶
> Earlier investors. Ever hear of pump and dump?

When did GrubHub buy early investors' shares with company cash?

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Retric ◴[13 Nov 24 20:39 UTC] No.42129730[source]▶
Early investors had already “sold” the company well before this transaction: 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 Meanwhile Just Eat Takeaway investors got taken for a ride.

replies(1): >>42133254 #
1. lotsofpulp ◴[14 Nov 24 04:53 UTC] No.42133254[source]▶
This does not seem like pump and dump:

https://www.investopedia.com/terms/p/pumpanddump.asp

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2. Retric ◴[14 Nov 24 09:33 UTC] No.42134488[source]▶
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

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.”