4 ms·
I am never taking a company public. Why would anyone subject themselves to this?
by rukittenme 8y ago
I am never taking a company public. Why would anyone subject themselves to this?
- lallysingh 8y agoYou want to grow your company and need a ton of money.
- tareqak 8y agoGetting access to public investment?
- deleted 8y ago[deleted]
- Mikeb85 8y agoSubject themselves to what? Having to be transparent and tell the truth in exchange for massive amounts of funding?
- itsslo 8y agoNaive. How about short sellers spreading fake news (or blowing news out of proportion) to suppress the price of your stock?
- Mikeb85 8y agoShort sellers keep prices in check and offer a healthy degree of scepticism. Also, short squeezes are plenty of fun when you're on the long side.
- happytoexplain 8y agoYour proposition might have legs, but I don't think the parent post was malicious enough to deserve prefacing your reply with such a curt criticism.
- ceejayoz 8y agoIt seems a bit silly to bash shorts for "spreading fake news" in defense of a CEO that settled with the SEC for demonstrably spreading fake news to combat shorts he perceives as persecuting his company.
- hnbroseph 8y agotwo wrongs don't make a right, or so the saying goes
- ceejayoz 8y agoI haven't seen much evidence the shorts have committed a wrong.
- FireBeyond 8y agoWhere's the -evidence-, as opposed to theories, that short sellers are actively and illegally manipulating the stock price with demonstrably false statements? False statements like "I've secured funding to take Tesla private", for example...
- itsslo 8y agoI disagree, it was of the same nature and tone.
- GenericsMotors 8y agoJust don't accuse upstanding citizens of being pedos, or try to manipulate your company's stock price with false promises of buying it back at a premium and you'll be fine.
- lamlam 8y agoNo one takes a company public for fun. They do it for funds. Especially for something like a car company that requires a lot of initial investment to get going. They can't start making money right away like a SaaS company might.
- paulddraper 8y agoNot wanting to take a company public reminds me of the story of one of Schwarzenegger's critics. "I never want to you look like you." "Don't worry, you never will."
- dmitrygr 8y agoIt is hard to pay market rates in cash when you're a startup, and nobody wants to own shares they cannot sell; allowing sales without being public gets messy quickly; and there is also a limit to the number of shareholders before you are required to go public.
- noblethrasher 8y ago> and there is also a limit to the number of shareholders before you are required to go public. You're never forced to go public, but you will be required to disclose financial data to the public if you have more than 1,999 individual shareholders and assets with a value that is greater than or equal to 10 million dollars.
- sambull 8y agoYou won't. Your investors will.
- azylman 8y agoLying to investors is illegal regardless of whether your company is public or private
- _Microft 8y ago"It sucks to run a public company" - ...someone
- happytoexplain 8y agoI think you're implying that, #1: There is a trend where public companies face unreasonable or unfair accountability laws, and #2: This case is an example of that. Am I off base? If not, #1 sounds like a reasonable argument could be made, though it would be better made explicitly rather than implicitly. #2, on the other hand, definitely needs elaboration.
- pkaye 8y agoJust don't take any investor money and you will be fine.
- DannyBee 8y agoYour private investors could sue you for this just as much! You may also some day want employees, and it seems unlikely you will be able to compete in compensation on the private side.
- rchaud 8y agoIf you are a CEO who's partial to headline-grabbing stunts over listening to what your corporate counsel is telling you about what you can legally announce, then yeah, you shouldn't go public.
- RivieraKid 8y agoTesla and Musk are doing a lot of shady, semi-legal stuff. Public companies have a harder time getting away with that. So in this regard, yes, staying private is better.
- rburhum 8y agomoney?
- dragontamer 8y agohttps://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001318605&type=424 https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&C... That's why. Filing 424: secondary offerings to the public market. https://www.sec.gov/Archives/edgar/data/1318605/000119312516596657/d185970d424b5.htm https://www.sec.gov/Archives/edgar/data/1318605/000119312516... There's $2,000,000,000 right there raised through the public market. https://www.sec.gov/Archives/edgar/data/1318605/000119312516773745/d270132d424b5.htm https://www.sec.gov/Archives/edgar/data/1318605/000119312516... There's 300-million or so. https://www.sec.gov/Archives/edgar/data/1318605/000119312514077288/d678614d424b5.htm https://www.sec.gov/Archives/edgar/data/1318605/000119312514... There's another $2,000,000,000 raised. -------- Companies go public to raise money. Elon Musk wanted to spend $5 Billion on a Gigafactory. How else was he going to get the money?
- gpm 8y agos/2,000,000,000,000/2,000,000,000/g
- dragontamer 8y agoAh shoot, I miscounted. Thanks for the correction. I've edited my post.