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When people buy stock in any company, they don't consider only the current value of the company as if it were to be liquidated today: they also consider future
by twblalock 5y ago
When people buy stock in any company, they don't consider only the current value of the company as if it were to be liquidated today: they also consider future earnings, which they hope will increase the future value of their shares.
The same logic applies when selling.
If a co-founder sells back their stake, why should the current value of the company be the sole basis for pricing the sale? As with any other stock, owning shares represents a claim on a portion of the value created by the company's future earnings.
If someone is going to sell that claim, they are entitled to take that into account. That's not rent-seeking; it's compensation for giving up a claim on future earnings.
Of course, all of this assumes that Elementary OS has a bright future ahead of it as a business which will increase its earnings and value, which seems unlikely. The founders seem to be arguing over a company that is worth less than a new Camry. But still!
- horsawlarway 5y agoMy guess is that he thinks that someone will buy the company when they become insolvent, and there's some cash to be made, but that he can't get it right now if the other founder isn't willing to sell. Honestly - I have no idea if he's right, but I think the Pantheon DE is relatively pretty, and has some nice pieces. Combine with the fact that it's a fairly popular distro with new users... and I suspect there's at least a chance he's right (I'd still bet against it happening, though). But for 23k... if I were in his shoes I'd probably also take that bet. I'd much rather have a chance at 100k (even if low odds) over 1.5 month's salary at the new gig.