Thursday, September 23, 2010

Shock: 409A Central to Silicon Valley Price-Fixing Conspiracy

According to Felix Salmon, writing for Seeking Alpha Blog, powerful Silicon Valley angel investors may have attended a meeting to discuss the pricing of 409A equity valuations, colluding to apply downward pressure on the pricing.

"It seems to me that Arrington is right, and that this dinner was an attempt by some very powerful angel investors, led by Ron Conway, to collude with each other on a number of different fronts. Quite possibly including 409a stock option pricing. Arrington’s a lawyer by training, and if he says this is illegal, then it’s worth investigating the accusation seriously, rather than trying to dismiss it in a blog entry featuring lots of swearing along with multiple font colors and sizes."

ARTICLE HERE

1 comment:

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