Path, the mobile photo-sharing startup led by former Facebook exec Dave Morin, just raised $8+ million in new financing from Kleiner Perkins and Index Ventures.
But Mike Arrington reports an interesting story: Google tried to buy the company for $100 million.
Google liked Path’s team and its design skills, according to Arrington. This could be EXTREMELY helpful in its war with Apple.
And Google also loved that Morin used to be a big shot at Facebook. Specifically, Arrington says, “They hoped it might help Google recruit more Facebook employees over time.”
So, basically, Google wanted to buy Morin and his team for $100 million to help Google fight Apple and steal employees from Facebook.
Enticing! But Morin said no. And Path raised a big round at a $25 million valuation instead, Arrington says.
Morin has said that he sees Path as a “30-year” brand, so it does seem premature to sell to Google, which would probably turn the app into “Google Mobile Photo Hotspot” or something.
So we’re not surprised that he didn’t sell so quickly.
But will Path ever get another $100 million opportunity? That is still very unclear.
Update: Arrington has quietly updated his post, removing a sentence about how Path was broke and that CEO Dave Morin was doing payroll out of his pocket. He now says that Path had a term sheet signed with Kleiner Perkins and Index before Google pounced.
Here’s the sentence Arrington removed: “At the time, say multiple sources, Path wasn’t really growing at all, was out of cash and making payroll from cash injections by cofounder and CEO Dave Morin.”
A source close to the situation says this is not true. Perhaps that explains why Arrington deleted it.