4 ms·
Sort of, but another way to look at it is Zynga is not a real estate company and shouldn't be valued based on its real estate. Decoupling the real estate and th
by jonknee 11y ago
Sort of, but another way to look at it is Zynga is not a real estate company and shouldn't be valued based on its real estate. Decoupling the real estate and the Real Business lets investors properly value both (when bankers say this they mean the two parts will be worth more than they are now as one).
- staticautomatic 11y agoSuch thinking would tacitly suggest that no company which is not in the real estate business should own real estate.
- mathattack 11y agoIn a sense it's a question of vertical versus horizontal integration. (Figuratively and literally) Do you want to concentrate just on what you're good at, or the whole stack? There's not a right and wrong answer, but it's best not to have too much value tied up in something that you're not focusing on.
- jonknee 11y agoThat's a common thought on Wall Street. Activist investors frequently push companies to separate from real estate holdings (and frequently succeed). This particular deal makes a lot of sense, the type of investor who wants real estate is not usually the same type that is interested in a struggling tech company.