The two main VC funds, as well as several insiders, including the CEO, are now sitting on billions in profits and are seemingly racing towards the exits.
Truth be told, I don’t blame them. FIT is a steaming pile of shit, who will eventually get destroyed by Apple. News came out this morning about the offering and I found it rather amusing, in a clown shot out from a carnivale cannon sort of way.
In the sale, Fitbit will offer 3 million shares instead of the 7 million it previously planned, according to a filing Friday. The number of shares sold by existing stockholders remains unchanged at 14 million. The price, $29, is 8.5 percent lower than the $31.68 close. The shares fell 6.2 percent to $29.71 at 7:21 a.m. in New York before the markets opened.
Let’s recap. The company itself, in good faith to the existing shareholders, reduced their part of the offering from 7 million shares to 3 million. However, their own CEO and the VCs said “fuck that” and kept their offering at 14 million shares and had the investment bankers price it deep in the hole in order to attract bag holders.
What a nice CEO.
For a broker, this is an easy sale. Clients will gladly take a secondary priced at an 8.5% discount to market, thinking they’ll flip it for a quick win. Brokers are fucking assholes and will buy anything with a sales concession affixed to it.
So there you have it. FIT shareholders fucked again, courtesy of you beloved venture capitalists.
FIT is cratering at the open, down 8%.
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planet fitness up nicely
ceos are the only people on the planet who matter
My girlfriend stopped counting her steps in August. Her employer couldn’t give two shits about walking in the brisk north eastern weather.
Of course it’s down FLY, as per my e-mail to you not long ago, I have a knack for wrong place wrong time. At least it’s options with defined risk.
The fitbit has to be the dumbest gadget of the last decade. I seriously can’t think of a bigger waste of money.