Foursquare raised about $412 million, was once valued at $450 million, and sold to ad tech company Infillion for zero dollars to every equity holder. Axios broke the acquisition on September 18, 2026 with terms undisclosed. A month later, co-founder Dennis Crowley confirmed in his Teendrama Snippets newsletter that preferred and common shareholders both got nothing.That is not the same as saying the company was worthless. Infillion bought a real business with roughly 150 employees and a data set it wanted. The $0 means whatever Infillion paid went to someone ahead of the shareholders, or the price simply didn't clear what the company owed. Here's how a household-name startup gets there.Infillion Bought All of Foursquare, and the Shareholders Got a Cancellation NoticeInfillion, the ad tech company formerly known as TrueX, is buying the entirety of Foursquare, according to Axios. Founder Rob Emrich told Axios the deal adds roughly 20% to 25% to Infillion's revenue and headcount. Most of Foursquare's roughly 150 employees join Infillion's 650. CEO Gary Little does not.The price stayed secret for about a week. Then angel investor Rick Webb, a shareholder since the early days, got the deal paperwork from Foursquare's counsel: a PDF of about 125 pages. Around page 50, he found the line that each share of Preferred Stock was "cancelled and extinguished" with no payment. He also noted the deal's internal codename was Project Frodo.Crowley then made it explicit: $0 for preferred, $0 for common. Current employees learned their shares were worthless from an email from the legal team. Former employees found out through a Carta email pointing to that same PDF.$412 Million In, $0 Out: The Capital Stack That Ate EverythingThe short answer: when even preferred stock is cancelled for nothing, the price didn't cover what sat above preferred. That usually means debt, deal costs and any payouts to the team carved out before shareholders. PitchBook, via Axios, counts about $412 million in debt and equity raised, not equity alone.RoundYearRaisedValuationLed bySeed/Series A2009$1.35M$6.35MUnion Square Ventures (Hedge Fund Alpha)Series B2010$20M$115MAndreessen Horowitz (Built In NYC)Series C2011$50M~$600M(Built In NYC)Series D + Microsoft extension2013–2014$77.1M$650M(Global Venturing)Debt2014$41M—Silver Lake, USV, a16z (Fortune)Series E (down round)2016$45M~$250M pre-moneyUnion Square Ventures (Fortune)Series F2018$33M—(TechCrunch)Growth round2019$150M$450MThe Raine Group (TechCrunch, Axios)Sale to Infillion2026—$0 to equityInfillion (Teendrama Snippets)Three things stacked against the shareholders.Preferences got richer as valuations fell. The 2016 Series E carried a 1.5x liquidation preference that only dropped to 1x if Foursquare hit $25 million in quarterly revenue, Fortune reported. Every new round adds another layer that has to be paid before anyone below it.Debt sits above all of it. Lenders get paid before preferred. Crowley says he raised both equity and debt as CEO, and the company raised more of both after he left the job.The 2019 money was the biggest check by far. Raine's $150 million was bigger than any two of its earlier equity rounds combined, at a $450 million valuation. Any sale below that mark puts the newest money first in line and everyone older behind it.As a classic HackerNoon explainer on how liquidation preferences work lays out, preference returns come straight out of common's pocket. Foursquare is the extreme case: the stack was so tall that the preferred holders lost too.Open question: Infillion's actual purchase price and the size of Foursquare's outstanding debt at closing have not been reported.Who Walked Away With Something, and Who Got a 125-Page PDFThe roughly 150 people still at Foursquare mostly keep jobs; the shareholders, early and late, get nothing. Here is how the outcome splits, based on what's been reported.GroupOutcomeSourceInfillionGets the whole company, adding 20%–25% to its revenueAxiosCurrent employeesMost of ~150 join Infillion; their equity is worthlessAxios, Teendrama SnippetsSVP of sales Lindsey KintnerBecomes GM of Infillion's data unit, joins its management teamAxiosCEO Gary LittleNot joining InfillionAxiosPreferred investors (USV, a16z, Raine and others)Shares cancelled with no paymentRick WebbFounders and common holders$0Teendrama Snippets~1,600 former employees over 17 years$0; many options and RSUs had already expiredTeendrama SnippetsThe leadership angle is what Crowley is angriest about. Gary Little, a Raine Group managing director, joined the board through Raine's 2019 round and became CEO in early 2021. TechCrunch reported he was largely installed to protect and grow Raine's investment. In May 2024 he laid off 105 people, about a quarter of staff, and killed Foursquare City Guide.Crowley says leadership failed to preserve the value it inherited over those six years. He also takes his share: he was CEO for seven years, sat on the board for 17, and held one of seven seats at the end.Open question: whether any executives got retention bonuses or a management carve-out from Infillion has not been reported. In deals like this, that's often where the money that skips shareholders actually goes.How Infillion Pulled It Off, and What It Will Do With FoursquareInfillion's whole strategy is buying ad tech assets whose capital stacks are underwater, then bolting them onto one platform. Foursquare is the third big piece in three years.The playbook: buy the wreckage, keep the machineryMediaMath, 2023: Infillion won bankrupt MediaMath at auction for $22 million, edging out Genius Sports' $20.55 million bid. MediaMath had once been valued above $1 billion and left SSPs owed nearly $125 million.Catalina, February 2026: Infillion bought the checkout-coupon pioneer for its purchase data, which covers 130 million households across 70 retail banners.Foursquare, September 2026: the location layer, a data business Rob Emrich told Axios is about twice the size of Infillion's own Gimbal.How a $0-to-equity deal actually closesThis is how such deals typically work; Foursquare's specific terms haven't been published. A buyer only has to satisfy whoever is senior in the stack, usually lenders, plus the board and the investors with voting control. Once they sign, standard drag-along and written-consent provisions bind everyone else. That fits the timeline: Rick Webb got the paperwork days after the announcement, not before it.The seller's leverage was weak. Foursquare hadn't publicly reported a new round since 2019, cut about a quarter of staff in 2024, and its newest money was priced at $450 million. A buyer that already owns a competing location product, Gimbal, could wait for the price to fall.What Infillion would do (what it has said)Keep Foursquare as an independent brand and keep selling its data to customers on rival ad platforms.Combine Foursquare's store-visit data with Catalina's purchase data, so an ad can be tied to whether someone visited a store and bought something.Evaluate Swarm and Superlocal, including open-source models and partnerships. Emrich had nothing to announce on Swarm.What it could doFold Gimbal into Foursquare, or the reverse, and run one location data unit under new GM Lindsey Kintner.Make Foursquare's places and visit data exclusive to Infillion, the way it said Catalina's U.S. purchase data will be available only on its platform. That would cut off the rival-platform customers it just promised to keep.Sell places data to AI agents. Infillion already pitches itself as built for agentic media execution, and a database of 100 million+ points of interest is exactly what agents need to answer "where should I go."What it should do (our take)Don't kill Swarm. Its 16 billion human-verified check-ins are what Foursquare uses to verify other location data sets. The consumer app is the quality-control engine, not a hobby.Open-source or spin out the consumer apps if Infillion won't invest in them, so the community that built the data keeps contributing.License to AI companies on its own terms before crawlers scrape the value away for free.What Founders and Employees Should Steal From Foursquare's EndingThe headline valuation tells you almost nothing; the stack underneath it tells you everything.Ask for the stack, not the valuation. Total preferences, their multiples, and outstanding debt set the price your common needs to clear. Foursquare's 2019 round was valued at $450 million, yet the 2026 exit didn't even reach the preferred.Watch for down rounds with sweeteners. A 1.5x preference like the 2016 Series E quietly raises the bar for every share below it.Track your option expiry. Crowley notes many vested options and RSUs had already expired before the sale. Companies can extend exercise windows; employees can ask.Know that carve-outs exist. When an acquirer wants the team, a set-aside for common holders, often cited around 10% of price, is a standard tool. No such carve-out for shareholders has been reported here.Tell people yourself. Staff learning their equity is worthless from a lawyer's email or a Carta notice is a choice, and it's the part of this deal Crowley calls disrespectful.A lot of money went in. Real revenue came out: Foursquare publicly cited $100M+ revenue years in 2019–2021. Neither number decides what shareholders get. Only the stack does.