Livongo Killed Teladoc, Part Two: CEO Out
[Not the “I told you so” edition. 😉] Once an uncontested leader in digital health, Teladoc Health continues to fall out of favor. This time, the board of Teladoc made its CEO the scapegoat.
On Friday, April 5, 2024, the board of Teladoc Health fired its CEO Jason Gorevic, making him the scapegoat for the underperforming stock price and for one of the largest tragedies in corporate finance history: the Teladoc-Livongo deal.
When the ship is sinking, the rats turn on each other.
In other words, in times of crisis, fingers start pointing. And the board is clearly pointing fingers at Mr. Gorevic.
The story from Teladoc’s board of directors is that Teladoc’s stock price dipped below its 2015 IPO price of $19 for the first time in 7 years on September 22, 2023. They argue that the company has lost value for its shareholders under CEO Jason Gorevic since it went public. However, the real story is that this is the board’s attempt to make Mr. Gorevic a scapegoat for the Livongo fiasco, particularly for making a shady deal with 7wireVentures VC firm.
The market clearly didn’t believe that story, as the stock price was subdued on Friday. This indicates that the blame for Teladoc’s failures is being placed by the stock market almost entirely on the board of directors and its chair, David B. Snow Jr.
It’s a sad day for many of us in digital health who consider Teladoc an industry pioneer.
Here is the outline of the article:
1. The Legacy of Jason Gorevic: The Good, the Bad, and the Unapologetically Ugly
2. Telehealth Market Financial Performance. (AKA the telehealth crash.)
3. Corrupt Wall Street Analysts. (The lies about TDOC, AMWL, and the rest of the telehealth market.)
4. I Told You So 😉
5. My Take
…continue reading on sergeiAI.substack.com.
👉👉👉👉👉 Hi! My name is Sergei Polevikov. I combine my knowledge of AI models with my unique skills in analyzing the financial health of digital health companies, no pun intended. 😊 I never sugarcoat or filter the hard truth. Subscribe to my newsletter at sergeiAI.substack.com, follow me, support my work and join a vibrant community of healthcare AI enthusiasts! Your engagement matters. 🙏🙏🙏🙏🙏
