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If you sell your company you lose your company. Everyone with the sophistication to be in a position to sell a company to Facebook for ten figures knows this. T
by spoonjim 6y ago
If you sell your company you lose your company. Everyone with the sophistication to be in a position to sell a company to Facebook for ten figures knows this. The main purpose of Zuckerberg saying “I won’t do X” is to give the Instagram some reputational repair so that when they get tsk-tsked on Twitter or at fancy parties in Napa that they can say “Hey he said he wouldn’t!” They knew he would.
- ISL 6y agoIf the sale contract says, "In the event that Acquirer does X, Acquirer will pay $100B to the EFF.", one might reasonably believe it, especially if $SUBSTANTIAL is held in escrow.
- elefanten 6y agoYeah those seem like terms that acquirers will just be cool with
- ISL 6y agoThey won't mind at all if they never intend to do X and it helps them get a discount. Poison pills like that are common in conservation easements, for example. Our family owns land with an easement which, if I recall correctly, states that anyone wishing to break the easement will owe back-taxes reaching back to 1992, with compounded interest, on the development rights to the land. In return, we were able to keep the family farm when my grandparents passed away.