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Former Facebook exec Dave Morin rejects $100-million buyout offer from Google

February 2, 2011 | 12:20 pm

Everyone in Silicon Valley is all a-Twitter (including an #itsnotabubble hashtag) about rising valuations and big buyout offers for young start-ups.

That's because TechCrunch's Michael Arrington popped the news Wednesday that Path, which on Tuesday raised $8.5 million in funding, rejected a $100-million buyout offer from Google (with $20 million more in incentives). Our sources confirm the report.

Path is led by former Facebook executive Dave Morin and has a spiffy design team. A personal network that limits your connections to 50 friends, it has hundreds of thousands of users, not enormous by Silicon Valley standards. But 20% of those users are coming back every day.

Google wanted the team and someone of Morin's stature, according to Arrington. But Path decided to remain independent and instead got a cash infusion from Kleiner Perkins Caufield & Byers at a $25-million pre-money valuation.

Morin declined to comment. But people familiar with the situation say investors are backing Path's decision.


Venture capitalist bet on former Facebook exec Dave Morin's social networking service Path

Path, a new social network, limits users to 50 friends

Venture capitalist John Doerr makes a big bet on the next wave of the consumer Internet

 -- Jessica Guynn