Random Ramblings Yesterday we discussed how the timing of Jet.com’s acquisition by Wal-Mart could have negative tax implications for Jet.com’s venture capital investors. Three other Jet.com acquisition notes: 1. We’ve learned from multiple sources that the effective cash sale price works out to $9 per Jet.com share. That’s a nifty premium on the $4.9879 per share Series B-1 price (that was the deal that closed 11/24/15), and means a huge payday for Jet.com co-founder and CEO Marc Lore. Sources say that Lore currently holds more than 50 million shares, of which he’ll sell around 20% up-front, with the rest continuing to vest (per his agreement to take over all of Wal-Mart’s ecommerce operations, in addition to continuing to lead Jet). Moreover, Lore is theoretically in line to receive around two-thirds of the $300 million in potential stock earn-outs that are on top of the $3 billion cash sale price. 2. What that $9 per share price also means is that Eric Martin is in line for around $900,000 (pre-tax), not $20 million. Who is Eric Martin? He’s the bath installation guy who last year won a Jet.com contest about who could get the most new users to sign up for the service (he spent around $18k on ads). The prize was 100,000 shares — which some news reports suggested could be valued at upwards of $20 million. I’m thinking that Martin will still be okay with his 50x return on investment… 3. Much like with the Unilever/Dollar Shave Club situation from last month, discussions between Jet.com and Wal-Mart were about a strategic investment before they were about an acquisition. In fact, a minority equity deal was still being bandied about just days before that sale papers were signed (perhaps as part of a Series C round, which was planned […]
