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Curious if this is part of a larger trend in IPOs across industries? And if something is driving it other than unique founder celebrity status'. And if I were
by siavosh 10y ago
Curious if this is part of a larger trend in IPOs across industries? And if something is driving it other than unique founder celebrity status'.
And if I were to make a bit of a leap, if this is an anti-democratic trend we're witnessing.
- lisper 10y agoNope, it's part of a trend that began with the Google IPO. Larry and Sergey kept control, but investors made money so they didn't care. Then Zuck tried the same thing, and it was a bit of rocky start, but investors still made money eventually. It will keep going until there is a disastrous IPO where founders keep control and investors lose their shirts and realize they have no recourse. Then it will stop.
- Animats 10y agoA few publicly held companies with multiple classes of stock have tanked. Zynga (remember Farmville?) is one. Their shareholders are suing the directors for insider trading; the insiders sold around $12 and the stock then crashed to around $3. Groupon is another. Their stock dropped over 75%. Management lost a shareholder lawsuit and paid out $45 million to shareholders. If a company goes into any form of bankruptcy, the insider control goes away. That's why Ford Motor Company didn't go bankrupt like GM and Chrysler - the Ford family would lose control. So their financial management is more conservative than the other auto companies.