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How can a 15B$ Revenue company can buy 20B$ company ?
by iamgopal 4y ago
How can a 15B$ Revenue company can buy 20B$ company ?
- geodel 4y agoTaking loan? That's how people with $50K income by $500K homes
- swyx 4y agobecause youre conflating stock and flow. adobe is worth $170b.
- collegeburner 4y agocompanies never buy with straight revenue. first it's half stock, so that becomes 10. second adobe had about $5b cash on its balance sheet. third they may have issued commercial paper or bonds to finance it, not in front of a bloomberg atm so i can't check issuances but it's pretty likely.