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"Really, if I'm Twitter and want to stop my stock from tanking, I get a line of credit and buy SnapChat" Twitter's valued at only $10 Billion. Snapchat just r

• partiallypro 10y ago
  It's equity value is not all that relevant during a buyout, there are different swap methods, etc. It's not unusual for a company with a smaller market cap to buy a larger one. A lot is to be considered, ebitda, debt, liabilities, cash flow, book value etc. I also said that their valuation will eventually fall. We are in a private equity bubble, but credit is still easy to come by.