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Foursquare acquisition yielded zero payout for equity holders, co-founder says

Foursquare was acquired roughly a month ago in an undisclosed deal that left both preferred and common equity holders with a $0 payout, according to co-founder Dennis Crowley.

Screenshot of a post by Dennis Crowley titled 'Some final words on Foursquare' with a photo of a Foursquare timeline wall and highlighted text stating the acquisition resulted in a $0 outcome for equity holders.
Image: @TheStalwart

Foursquare was acquired approximately a month ago in a transaction that resulted in a $0 payout for both preferred and common equity holders, co-founder Dennis Crowley wrote in a post on Teendrama Snippets. Crowley described the sale as the conclusion of a 17-year journey that began around his kitchen table in New York's East Village in 2009.[1][2][3]

Although the official terms of the sale were not disclosed, Crowley cited paperwork shared by an early angel investor showing that each share of preferred stock was cancelled and extinguished without conversion, cash, or consideration. Crowley also placed blame on company leadership installed in 2021.[1][2][3]

Reacting to Crowley's post, Joe Weisenthal reflected on the startup's closure, noting how significant Foursquare was to the New York City tech ecosystem in its early years when it appeared positioned to become a Twitter-sized company.[1]

Key facts

  • Foursquare was acquired roughly a month ago, concluding a 17-year run started in 2009, according to co-founder Dennis Crowley.
  • The acquisition resulted in a $0 payout for both preferred and common equity holders.
  • Sale paperwork cited by Crowley stated preferred shares were cancelled and extinguished without any cash payment or conversion.
  • Crowley faulted company leadership installed at Foursquare in 2021.
  • The formal financial terms of the acquisition deal were not publicly disclosed.

Sources · 3 sources

  1. JW

    Joe Weisenthal@TheStalwartPost on X ·

    It's hard to describe how significant Foursquare was to the NYC tech echosystem back in the old days. Would never have imagined this outcome back then, when it seemed like it could become a Twitter-sized company. Good piece from @dens on its closure. https://t.co/i71yvrrwWX https://t.co/Mm2acjGII1

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  2. TE

    TechmemeArticle ·

    Foursquare co-founder says the company was acquired a month ago in a deal resulting in a $0 payout for equity holders, and faults leadership installed in 2021 (Dennis Crowley/Teendrama Snippets) Dennis Crowley / Teendrama Snippets : Foursquare co-founder says the company was acquired a month ago in a deal resulting in a $0 payout for equity holders, and faults leadership installed in 2021 — After 17 years, FSQ's ending has been written. Some thoughts on our final years, an effort to honor the team …

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  3. TE

    Techmeme@TechmemePost on X ·

    Foursquare co-founder says the company was acquired a month ago in a deal resulting in a $0 payout for equity holders, and faults leadership installed in 2021 (@dens / Teendrama Snippets) (Visit Techmeme dot com for the link and full context!)

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