KEY POINTS
- Practice Fusion sold for $100 million, after reports in 2016 said the company might go public at a $1.5 billion valuation.
- Documents show the company was looking for a buyer and that bids were a fraction of that price.
- Executives pulled in millions as part of a pre-arranged deal, while common shareholders were wiped out.
Karl-Josef Hildenbrand | AFP | Getty Images
When Practice Fusion, a medical records start-up, sold to AllScripts for $100 million this month, it was a massive disappointment for employees and investors. Only two years earlier, their stock in the company was reportedly worth 15 times the purchase price.
Start-ups crash and burn all the time. It's an inherent risk and one that's understood across Silicon Valley.
Trending Now
1
Trump proposes 20% toll on cargo through Strait of Hormuz; restarts Iran blockade 2
Trump recommends Lindsey Graham's sister serve as interim senator for South Carolina 3
The best states to live in for 2026: No. 1 has a six-year winning streak 4
SpaceX stock sinks for a second-straight day, nearing $135 IPO price 5
These are America’s 10 worst states to live in for 2026