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I'm aware of that, but the valuation implies that at least the investors think there's a plausible path for the business to be larger than Hyatt.
by 9nGQluzmnq3M 7y ago
I'm aware of that, but the valuation implies that at least the investors think there's a plausible path for the business to be larger than Hyatt.
- braythwayt 7y agoWhen the valuation is based on investment by investors already in the deal... It does not imply that they think there’s a plausible path for the business to be worth the money. As events have shown with WeWork, it implies that they are maintaining the façade for a little while longer while hoping o get to the point where they can unload the business onto the public markets. Asking SoftBank what they think their investments are worth is like asking me what I think my house is worth. You Have to go by what arms-length investors are willing to pay. I really think we need a new rule where nobody quotes a valuation if the last round involved existing investors and/or founders pumping up the valuation with additional investment.