4 ms·

It all depends on the value of the common stock. If the common stock is worth 30% less than the preferred stock, then the common stock purchase should be zero-s

It all depends on the value of the common stock. If the common stock is worth 30% less than the preferred stock, then the common stock purchase should be zero-sum. If it is worth more, then SoftBank is indeed buying at a bargain and this is analogous to a down round. Just the fact alone that they’re getting preferred shares at the same price as the last round is a bad sign. Shouldn’t companies be trying to increase valuations at each round? I didn’t see any defensiveness on the part of the parent poster. Your expressions conveyed more emotion. That said, they added color to your writing and shouldn’t be omitted.

JumpCrisscross 9y ago
> Shouldn’t companies be trying to increase valuations at each round? A CEO, who was pushed out [1] over a sexual harassment scandal [2][3] while his company was being sued by fucking Google [4], launched a civil war at the Board level [5]. An outsider had to be brought in to save the peace [6]. Also they got hacked and tried to cover it up [7]. Yes, bigger valuation is generally better than smaller valuation. But sometimes smaller valuation has to do. [1] https://www.nbcdfw.com/news/business/Uber-CEO-Travis-Kalanick-Steps-Down-429816703.html https://www.nbcdfw.com/news/business/Uber-CEO-Travis-Kalanic... [2] https://www.susanjfowler.com/blog/2017/2/19/reflecting-on-one-very-strange-year-at-uber https://www.susanjfowler.com/blog/2017/2/19/reflecting-on-on... [3] https://www.nytimes.com/2017/02/19/business/uber-sexual-harassment-investigation.html?_r=0 https://www.nytimes.com/2017/02/19/business/uber-sexual-hara... [4] https://www.reuters.com/article/us-alphabet-uber-lawsuit/waymo-seeks-delay-of-uber-trade-secrets-trial-over-new-evidence-idUSKBN1DS02B https://www.reuters.com/article/us-alphabet-uber-lawsuit/way... [5] https://techcrunch.com/2017/08/30/pishevar-says-delaware-court-is-sending-benchmark-lawsuit-to-arbitration/ https://techcrunch.com/2017/08/30/pishevar-says-delaware-cou... [6] https://www.bloomberg.com/news/articles/2017-09-27/uber-softbank-deal-is-said-to-ensure-limits-on-kalanick-s-power https://www.bloomberg.com/news/articles/2017-09-27/uber-soft... [7] https://www.engadget.com/2017/11/25/uber-ceo-knew-about-hack-months-in-advance/ https://www.engadget.com/2017/11/25/uber-ceo-knew-about-hack...
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JumpCrisscross 9y ago

> Shouldn’t companies be trying to increase valuations at each round? A CEO, who was pushed out [1] over a sexual harassment scandal [2][3] while his company was being sued by fucking Google [4], launched a civil war at the Board level [5]. An outsider had to be brought in to save the peace [6]. Also they got hacked and tried to cover it up [7]. Yes, bigger valuation is generally better than smaller valuation. But sometimes smaller valuation has to do. [1] https://www.nbcdfw.com/news/business/Uber-CEO-Travis-Kalanick-Steps-Down-429816703.html https://www.nbcdfw.com/news/business/Uber-CEO-Travis-Kalanic... [2] https://www.susanjfowler.com/blog/2017/2/19/reflecting-on-one-very-strange-year-at-uber https://www.susanjfowler.com/blog/2017/2/19/reflecting-on-on... [3] https://www.nytimes.com/2017/02/19/business/uber-sexual-harassment-investigation.html?_r=0 https://www.nytimes.com/2017/02/19/business/uber-sexual-hara... [4] https://www.reuters.com/article/us-alphabet-uber-lawsuit/waymo-seeks-delay-of-uber-trade-secrets-trial-over-new-evidence-idUSKBN1DS02B https://www.reuters.com/article/us-alphabet-uber-lawsuit/way... [5] https://techcrunch.com/2017/08/30/pishevar-says-delaware-court-is-sending-benchmark-lawsuit-to-arbitration/ https://techcrunch.com/2017/08/30/pishevar-says-delaware-cou... [6] https://www.bloomberg.com/news/articles/2017-09-27/uber-softbank-deal-is-said-to-ensure-limits-on-kalanick-s-power https://www.bloomberg.com/news/articles/2017-09-27/uber-soft... [7] https://www.engadget.com/2017/11/25/uber-ceo-knew-about-hack-months-in-advance/ https://www.engadget.com/2017/11/25/uber-ceo-knew-about-hack...

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