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I think even public companies often disclose the prices though, especially for major ones. This being said, I have been thinking about the GitLab IPO, including
by yuhong 10y ago
I think even public companies often disclose the prices though, especially for major ones. This being said, I have been thinking about the GitLab IPO, including things like fixing Reg FD for a while now.
- dragonwriter 10y ago> I think even public companies often disclose the prices though, "Even public companies"? Public companies are required to report a lot of financial information publicly that non-public companies are neither required to report nor in the habit of reporting.
- yuhong 10y agoThe point is there probably won't be much problem in disclosing this info and they will likely have to do so after they IPO anyway.
- sytse 10y ago'Whether or not there a separate disclosure about a specific transaction (including its price and form of consideration) depends on the size of the acquisition relative to the size of the company and whether the acquisition is "material." Accounting rules define "materiality" in an intentionally broad way. From FASB Statement of Concepts #2: The omission or misstatement of an item in a financial report is material if, in the light of surrounding circumstances, the magnitude of the item is such that it is probable that the judgment of a reasonable person relying upon the report would have been changed or influenced by the inclusion or correction of the item. In practice, a company's auditors will set a materiality threshold based on a company's revenue, assets, and net income. Thus, big companies can make small acquisitions without disclosing much.' from https://www.quora.com/For-a-public-company-when-does-the-size-of-an-acquisition-have-to-be-disclosed-publicly https://www.quora.com/For-a-public-company-when-does-the-siz...
- yuhong 10y agoOf course, GitLab should do better than that if possible