4 ms·
If that's all Zynga paid in underwriting fees they got a good deal. There's usually a 7% commission for underwriting in the US: http://www.theatlantic.com/busi
by a3camero 15y ago
If that's all Zynga paid in underwriting fees they got a good deal.
There's usually a 7% commission for underwriting in the US: http://www.theatlantic.com/business/archive/2011/06/is-underwriting-a-cartel/240199/ http://www.theatlantic.com/business/archive/2011/06/is-under.... Odd to be criticizing the underwriters for making too much money when they seem to have cut Zynga a rather good deal.
- _delirium 15y agoThere's some pushback on whether that standard figure is inflated beyond what it should be in a competitive market, though, partly because it's been held up (like real-estate commissions) as this un-negotiable standard fee that just gets applied. More companies are starting to demand it be negotiated, so it's not clear anybody really pays 7% anymore. Related op-ed from a while back about how the US government negotiated rates more like 0.5-0.75% when it floated AIG and GM, and comparing the US underwriting rates to those in Asia: http://webcache.googleusercontent.com/search?q=cache:jxDEKODXc88J:finance.yahoo.com/news/Why-Businesses-Should-Demand-dg-3691424926.html+&cd=1&hl=en&ct=clnk http://webcache.googleusercontent.com/search?q=cache:jxDEKOD...
- cma 15y agoReal estate commissions are negotiable as hell.