3.1 Finance Activity
1. What is Groove Book?
A photobook that you get each month.
2. Where was the Deal made?
In the Shark Tank studio
3. How much did Groove Book sell for and who bought them?
$14.5M and was acquired by Shutterfly
4. What is the cost of service per month?
$2.99 per month
5. The deal was made with what two shark investors?
Mark Cuban and Kevin O’Leary
6. What is included in the deal?
It includes an upfront purchase amount and an earn out based on future performance.
7. The deal was made for how much?
The couple made the deal with the investors for $150,000
8. What was the percentage of the licensing rights of Groove Book?
They made the deal for 80% of the licensing rights
9. How much did the Whiteman’s invest to launch the business?
They invested $400,000 to launch the business.
10. GrooveBook is now the first idea pitched on Shark Tank that has been acquired by a public
company.
What are your thoughts about Shutterfly's acquisition of GrooveBook? Explain.
I think this was a great idea. The company saw that GrooveBook was getting big, so they
decided to take over and purchase the business before it got even bigger.