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> Earlier investors. Ever hear of pump and dump?

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






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.


This does not seem like pump and dump:

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


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.”




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