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So A Blogger Walks Into A Bar…

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Re: So A Blogger Walks Into A Bar…

#31
It's too early to write this blog post.

Arrington tried to manufacture a happy medium between not saying anything and outing every person at the meeting. Not outing everyone implies you're not entirely sure. Not being entirely sure, yet talking about it anyway is a cheap way to get a story.

Waiting until things are more clear cut would have earned him points in my book- I suppose it's not worth it when the alternative is having everyone follow the story on TC from now until its conclusion.

Re: So A Blogger Walks Into A Bar…

#33
post #13

In what sense do antitrust laws apply to investors? Why is it unlawful for investors to band together to get better terms for themselves? Wouldn't it be perfectly legal for these people to sit around a table an agree to merge and start a fund? If that's the case, how could it be unlawful for them to work on a joint venture? Just because I don't like the JV doesn't make it unlawful!

It sounds like price fixing, even though they are buying and not selling. Check out Wikipedia for a good write-up:

"Price fixing is an agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand. The group of market makers involved in price fixing is sometimes referred to as a cartel.

The intent of price fixing may be to push the price of a product as high as possible, leading to profits for all sellers, but it may also have the goal to fix, peg, discount, or stabilize prices. The defining characteristic of price fixing is any agreement regarding price, whether expressed or implied.

...

Colluding on price amongst competitors is viewed as a per se violation of the Sherman Act regardless of the market impact."

Re: So A Blogger Walks Into A Bar…

#35
post #13

In what sense do antitrust laws apply to investors? Why is it unlawful for investors to band together to get better terms for themselves? Wouldn't it be perfectly legal for these people to sit around a table an agree to merge and start a fund? If that's the case, how could it be unlawful for them to work on a joint venture? Just because I don't like the JV doesn't make it unlawful!

A joint venture (or a legal entity aka as a company) operates under very different rules than parties working together, probably without a contract.

I don't know how the antitrust laws apply, not even if what they are doing collude with any law at all, despite preventing healthy competition, but your questions come from the wrong premises.

Re: So A Blogger Walks Into A Bar…

#36
post #24
post #21

Earlier quoted context omitted.

I'd like to know the laws too, this could be construed as collusion, conspiracy and probably a few other things.

How? What market power are they exploiting? There's no conceivable monopsony for "shares of all startups".

They are a group of people supposedly conspiring to generate the worst possible terms for the people they are providing money to, while trying to force out or marginalize competition.

IANAL though - even if not illegal, it's still pretty stinky, and a big part of me hopes it's not illegal. If it's not illegal, I hope they're outed and shamed if this is true. If it is illegal, it give the government reason to step in and screw everything up.

Re: So A Blogger Walks Into A Bar…

#39
But the conversation has evolved to the point where these super angels are actually colluding (and I don’t use that word lightly) to solve a number of problems, say multiple sources who are part of the group and were at the dinner.

Given Arrington's allegations, why would someone in the group or at the dinner admit to the collusion? These are smart guys talking to a prolific, ballsy blogger--what do they expect will happen? What's in it for them?

At least two people attending were extremely uneasy about the meetings, and have said that they are only there to gather information, not participate.

It also strikes me as odd how specific he is when mentioning figures. Why not simply say, "Several people who attended the meeting..."? By specifically saying that there were two, he will have everybody who was there guessing who those two are. Also, if there was just one person, it would make sense for him to specify that there were two to throw off the rest of the group, no?

Re: So A Blogger Walks Into A Bar…

#40
post #14

There's only half the story here because Arrington isn't naming names. It was a meeting of a group of people in a semi-public place, I don't see why he hasn't named who was there: "So, I went into the restaurant to find Dave, Ron, Jeff, Mike, Josh, Chris, ..." (I'm just naming, um, random first names here folks for the purpose of illustration!) He's clearly running a power play around the identities...

er, because he wants to maintain relationships with his friends who were around the table?
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