4 ms·

This company was just acquired by Zoom for ~$15B

by ksaxena 5y ago

sam_dal 5y ago
Yeah, and I have been thinking good job of them sucking from Zoom a la Autonomy or Qualtrics.
plumeria 5y ago
Caveat: all-stock transaction.
- bradhe 5y ago
  Turned out to be a great get thanks to COVID.
- France_is_bacon 5y ago
  $15B in all stock = $15B in collateral = as much cash as you can conceivably wish for in your wildest dreams. "Hey, bank manager, I have $15B in stocks, will you loan me $150 million to buy this really, really nice home in Malibu?" Bank manager: "Yesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyes"
  - nickpp 5y ago
    The stock may very well crater in value all the way to 0, but the loan must still be paid, with interest and all.
    - Seanambers 5y ago
      I would assume that over time the property will have a better total return profile than the cost of the bank loan. Short term this might not be true, but over longer time frames it usually is. So its just a question of the company staying afloat for long enough..
    - vijayr02 5y ago
      Not necessarily true. The loan (especially if you're borrowing 1% of the collateral value) could be non recourse [0]. In such a case the bank can only depend on the stock value for recovery. [0] https://www.investopedia.com/ask/answers/08/nonrecourse-loan-vs-recourse-loan.asp https://www.investopedia.com/ask/answers/08/nonrecourse-loan...
    - France_is_bacon 5y ago
      The stock may go to zero. Or it may to to $20 billion, or it may to to $5 billion, or it may go to $5.1487 billion. My point remains the same. The whole "has it in paper" as if that has no relation to cash, is not correct. Having stock is the exact same as having cash. Actually, it is way better. Because if you get cash, you have to pay taxes on it, so on $15 billion, that would be $5 billion in taxes, let's say. But if you get stock, then there's no taxes, but you get to borrow against it and get the cash anyways, as much as you need. Sure, it might go to zero, but that's a pretty lame argument.

This company was just acquired by Zoom for ~$15B

sam_dal 5y ago

Yeah, and I have been thinking good job of them sucking from Zoom a la Autonomy or Qualtrics.

plumeria 5y ago

Caveat: all-stock transaction.

bradhe 5y ago
Turned out to be a great get thanks to COVID.
France_is_bacon 5y ago
$15B in all stock = $15B in collateral = as much cash as you can conceivably wish for in your wildest dreams. "Hey, bank manager, I have $15B in stocks, will you loan me $150 million to buy this really, really nice home in Malibu?" Bank manager: "Yesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyesyes"
- nickpp 5y ago
  The stock may very well crater in value all the way to 0, but the loan must still be paid, with interest and all.
  - Seanambers 5y ago
    I would assume that over time the property will have a better total return profile than the cost of the bank loan. Short term this might not be true, but over longer time frames it usually is. So its just a question of the company staying afloat for long enough..
  - vijayr02 5y ago
    Not necessarily true. The loan (especially if you're borrowing 1% of the collateral value) could be non recourse [0]. In such a case the bank can only depend on the stock value for recovery. [0] https://www.investopedia.com/ask/answers/08/nonrecourse-loan-vs-recourse-loan.asp https://www.investopedia.com/ask/answers/08/nonrecourse-loan...
  - France_is_bacon 5y ago
    The stock may go to zero. Or it may to to $20 billion, or it may to to $5 billion, or it may go to $5.1487 billion. My point remains the same. The whole "has it in paper" as if that has no relation to cash, is not correct. Having stock is the exact same as having cash. Actually, it is way better. Because if you get cash, you have to pay taxes on it, so on $15 billion, that would be $5 billion in taxes, let's say. But if you get stock, then there's no taxes, but you get to borrow against it and get the cash anyways, as much as you need. Sure, it might go to zero, but that's a pretty lame argument.