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How can a company that's worth $8 billion need an injection of $400 million? Simple- it ain't worth $8 billion. Can we please put a moratorium on pegging valua
by dkrich 15y ago
How can a company that's worth $8 billion need an injection of $400 million? Simple- it ain't worth $8 billion.
Can we please put a moratorium on pegging valuations on companies that are still reliant on raising funding rounds? We're not talking about a company that produces industrial machinery in large factories. We're talking about a micro-blogging website that's been in existence for four years.
- wyclif 15y agoOver five years, but your point is well-taken.
- harryh 15y agoWell, if someone is willing to pay 400M for 5% of the company it certainly seems like it's worth 8B total. This is how markets work. How else do you propose we put a value on things?
- dkrich 15y agoThat's not a market valuation. That's one group's overinflated opinion of Twitter's value. A market valuation is obtained by offering a good for sale to a public group of people who, in concert, determine a fair value over a certain period of time.