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Snapchat is not 'worth' 17 billion. Some investors start to make money on the investment iff Snapchat exits or IPOs above 17b, but that's about it. The term 'va
by rsp1984 10y ago
Snapchat is not 'worth' 17 billion. Some investors start to make money on the investment iff Snapchat exits or IPOs above 17b, but that's about it. The term 'valuation' is completely misleading when applying it to this 17b number.
In fact, due to liquidation preferences in the term sheets Snapchat's true valuation (i.e. the point at which investors actually lose money) immediately post investment, according to basic math, is $0.
- jonknee 10y agoI think Facebook would make a $17b offer, but that the actual number is significantly higher. Snapchat is much more of a threat to Facebook than Whatsapp and FB had no problem opening up the piggy bank to grab it.