[damoncali]

I think that's exactly right - this wouldn't be a story if PrivCo wasn't mostly right about the big picture. The big picture is one of impending doom at LS, and yes, if that comes to bear, the little guys will get nothing.

Sure, they come off as slimy (and maybe they are - I have no idea). But the details matter less than the overall story here.

[tptacek]

That's what PrivCo would say to defend what's happened. Like you, they'd be careful to couch the defense in terms of ideas that are hard to falsify. Of course, they got to this point in the conversation by reporting a series of material falsehoods; their initial specificity is what scored them a seat at the table. But let's ignore that they have no credibility anymore and instead entertain our own biases about what's happened.

It is especially easy to pull this off when the topic is a company we don't like.

[damoncali]

I can't say I disagree. They displayed some pretty aggressive, and possibly unethical tactics here. But honestly, I don't much care about their account (as it seems to be inaccurate). I do care about LivingSocial's account, which is interesting to me, and paints pretty much the same picture.

[tptacek]

That is the audience sentiment PrivCo is counting on.

[damoncali]

They're counting on me wanting to see the truth and thinking that they're scammy and unreliable? Seems like an odd strategy.

[tptacek]

Do you really feel like your perspective on LivingSocial's core business is underrepresented, and that continually reminding us of how little regard you have for it is a contribution?

Because I actually do think that the untrustworthiness of this report, and, more importantly, the implications of that untrustworthiness is underrepresented and is worth talking about more. Whereas a chin-wagging circle of commentary about how unsustainable daily-deals sites are does not seem particularly valuable.

(This comment reads meaner than I intend it to be.)

[damoncali]

Fair point. The dishonesty is simple to me: open and shut. It's in the state filings. PrivCo at best got pretty bad information and published it without verifying it, and at worst made a bunch of stuff up to drive traffic. Not much to discuss there - it's bad.

LivingSocial's business, though, changes over time, and is worth discussing from time to time. Down rounds are always interesting to me. The decreasing margin in the deals business is interesting to me. That LS still apparently plans an IPO, in the face of a fairly brutal down round is interesting to me. That they think they can be worth $1B is interesting. (As is the current valuation when you read between the lines). The sliding liquidation preference is whole discussion unto itself. But yes, it's a pretty well trodden topic when reduced to "LS's business model is flawed". So I'm guilty there.