So this is interesting. At TechCrunch Disrupt, Path’s co-founder Dave Morin sat down with our own Jason Kincaid to discuss Path’s strategy and growth. During the conversation, Kincaid asked Morin about that $100 million acquisition offer from Google that we reported previously.
As our report goes, in early December Path had a signed term sheet with Kleiner Perkins and Index for a $8.5 million raise. At that point Google made an acquisition offer for a whopping $100 million for the company plus an earnout of $25 million to be paid over four years. Google wanted Path because they loved the team, particularly the team’s “design skills,” and were very enthusiastic to get a prominent ex-Facebooker, Morin, at Google.
But Path turned the offer down. And closed the deal with Kleiner and Index at a roughly $25 million pre-money valuation. Why? As Kincaid tells us, we heard that there was one term of the offer that was the breaking point—basically Google could fire Morin at any point. Either a month after a deal or a year. Also the search giant gave no guarantee as to what Morin’s title and position would be at Google.
We also heard the deal involved $25 million upfront and some sort of $75 million plus earnout offer.
As Morin tells Kincaid about the report, “I wish I could talk about it…clearly TechCrunch has great sources…no comment.”
Path brings people closer together. Guided by the belief that mobile technology will fundamentally change the cultural, social, and economic landscape, Path focuses on simplicity, quality, and privacy to provide the best mobile personal networking service in the world. Path was designed with the people you love, your closest friends and family, in mind. It’s a trusted, intimate environment like your dinner table at home. 5 star rated, top 10 ranked, Path is loved by tens of millions of...