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The invested capital has very little correlation with the ultimate value of the company. You obviously want to pay as little as possible for a company you're a
by mikeyouse 11y ago
The invested capital has very little correlation with the ultimate value of the company. You obviously want to pay as little as possible for a company you're acquiring but would you say that Google overpaid for Youtube? Youtube only had raised $11M but Google paid $1.7B to buy their team and technology after something like 18 months of operating.
Many investments don't pan out, but when they do, they're worth every penny.
- tardo99 11y agoYoutube had a large and expanding user base and was clearly on the way to dominating a category. Cruise has no users and basically just a technology platform. GM will regret this buy.