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no different to raising a Series A or B. Facebook have so much cash now that they will likely never go back to the market again. They raised an extraordinary am
by nikcub 14y ago
no different to raising a Series A or B. Facebook have so much cash now that they will likely never go back to the market again. They raised an extraordinary amount of money at a very large valuation.
They also have over 50% of voting control with one person so don't need to really deal with shareholders. The only single downside is employee option values and incentive packages.
Edit: to add to that, there is also a strong school of thought amongst investors that companies and CEO's who track daily, monthly, quarterly etc. stock fluctuations (ie. short term) are a lot less effective than those who ignore the short-term movements. Facebook said as much in their S1, and Zuck in his letter, that he won't be following the stock or dealing with the market, but will rather focus on building the company long-term.
- jan_g 14y ago>to add to that, there is also a strong school of thought amongst investors that companies and CEO's who track daily, monthly, quarterly etc. stock fluctuations (ie. short term) are a lot less effective than those who ignore the short-term movements. Facebook said as much in their S1, and Zuck in his letter, that he won't be following the stock or dealing with the market, but will rather focus on building the company long-term. Yes, this is much closer to my thinking and that's why I called you out on your argument.
- nikcub 14y agoto clarify, he only doesn't care about the price after he has sold billions of dollars worth of stock. until Friday, he definitely cared (to the point of borrowing money to buy a house so he wouldn't have to sell an extra share).