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I would hope that this results in a reduction of companies seeking to go public in the first place. We've seen many cycles of: innovation -> growth -> IPO -> h

by njovin 2y ago

I would hope that this results in a reduction of companies seeking to go public in the first place. We've seen many cycles of: innovation -> growth -> IPO -> happy customers + employees -> not enough growth -> PE -> layoffs -> product/user decline. The demand for ever-increasing a growth demanded by the markets is not sustainable for a majority of businesses. IMO the employees, customers, and general public would benefit from companies growing to a healthy size and then maintaining that plateau. SquareSpace has ~44% of the self-hosted website market. Shouldn't that be enough?

JumpCrisscross 2y ago
> SquareSpace has ~44% of the self-hosted website market. Shouldn't that be enough? They’re making hundreds of thousands of dollars of profit on hundreds of millions of dollars of gross profit [1]. Most of the cost is marketing & sales. Private equity is actually about focussing less on growth and more on sustainability; the logic of this acquisition is that 44% is enough. [1] https://d18rn0p25nwr6d.cloudfront.net/CIK-0001496963/d08174f7-541b-45e6-989e-ac8bd043eae5.pdf https://d18rn0p25nwr6d.cloudfront.net/CIK-0001496963/d08174f...
- CapcomGo 2y ago
  Isn't PE really focused on getting their fees?
  - JumpCrisscross 2y ago
    > Isn't PE really focused on getting their fees? Sure? Most people are motivated by compensation.
deleted 2y ago
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