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If Fidelity just did a 25% write down on SnapChat on the most senior portion of a $600m investment round, and assuming that Fidelity has at least a 1x liquidity
by rdlecler1 11y ago
If Fidelity just did a 25% write down on SnapChat on the most senior portion of a $600m investment round, and assuming that Fidelity has at least a 1x liquidity pref/ratchet, then SnapChat is now valued at $462M floor, not $15 billion.
- vincent_s 11y agoWhat about other investors who also have liquidity preferences?
- ericd 11y agoThe latest investment/liquidity pref is usually satisfied first.
- mring33621 11y agoPeter Gregory is definitely, posthumously, very disappointed in SnapChat.
- econner 11y agoI don't follow. Can you explain in more detail?
- rdlecler1 11y agoIf they are guaranteed to at least get their money back AND they did a 25% write down, then they are assuming that if there was a liquidity event tomorrow, that that would only get back $0.75 on the dollar, and others less senior get $0. This means that SnapChats valuation mark-to-market price is only $462M because that is all they feel that could be recouped.