Haven't posted in 9 months....yeah why not.
I don't read much about Sports on the Internet these days. But I usually blow through TMQ for about 10 minutes a week. Here's the thing about Gregg - if you aren't very knowledgeable about his subject, and you don't pay much attention while you're reading it - and you don't research what he says....he sounds brilliant. But, as usual, his smugly made point completely falls apart when you actually pay attention or research the subject.
This paragraph caught my eye from the latest TMQ:
Groupon Issues Coupons for Its Own IPO: Groupon just had a successful IPO, raising $805 million. Eleven months ago, the same company turned down a $6 billion purchase by Google. Had Groupon accepted the Google proposal, its early investors and founding management would have $6 billion; instead, following the IPO they are holding a much smaller sum.
The IPO was only for approximately 6% of the company's shares. True, they are holding less cash - but they are holding $805 million in cash, and equity in a company now worth approximately $15 billion. So if Google wants to buy Groupon NOW? They'd have to pony up probably $16+ billion to buy everyone out.
Does that sound like they made a bad decision? It does if you ignore the fact that he's comparing 6% of the stock to 100% of the stock without quantifying the difference.
True, they also still hold equity,
and could wind up ahead in the long run.
"could" - if the stock goes down 50%.....they still wind up ahead.
Or they may end up way behind: Your columnist noted 11 months ago that Groupon someday may wish it had accepted the Google offer.
"May" "May" .......what the fuck is your point? This is meaningless non-analysis to mislead your readers into thinking you're smarter than some really smart people.
At any rate, rather than getting $6 billion in 2011, Groupon insiders got $805 million. Groupon issued discount coupons for itself, offering 87 percent off!
No! They didn't! They held out and the value of the company more than doubled!
Check my archives for more Easterbrook commentary.