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What happens to the unicorn's equity stake in a unicorn-backed company if the unicorn itself goes out of business? Does that equity get re-distributed to the un
by asaph 8y ago
What happens to the unicorn's equity stake in a unicorn-backed company if the unicorn itself goes out of business? Does that equity get re-distributed to the unicorn's investors?
- sjtgraham 8y agoSeems like an asset that would be liquidated to pay failed co's creditors, preferred stockholders per liq prefs, and common if anything is left.
- atlasunshrugged 8y agoI think sometimes they get spun into their own legal entity, I'm thinking about Yahoo's and Naspers. In Naspers case their investment in Tencent is worth so much that actually Tencent's value is what drives most of Naspers stock price https://en.wikipedia.org/wiki/Naspers https://en.wikipedia.org/wiki/Naspers