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Having a good revenue stream is also a pre-req for staying private long term. I think the fear here is that a public company is going to optimize heavily for p
by tdb7893 2y ago
Having a good revenue stream is also a pre-req for staying private long term.
I think the fear here is that a public company is going to optimize heavily for profits to the detriment of the service itself, which public tech companies seem to often do (not that private companies don't do this, it just doesn't seem like they generally do it as consistently and to the same extent as public companies). Subjectively I've found acquisitions or IPOs are often a bad sign for product quality.
- bawolff 2y ago> I think the fear here is that a public company is going to optimize heavily for profits to the detriment of the service itself, which public tech companies seem to often do I think that is largely because we remember the ones that do and not the ones that don't. As an example, companies like microsoft & amazon, while ruthless, don't really fit that mold.
- ziml77 2y agoExactly this. If a company isn't bringing in enough money to support their service, they are going to look to other sources. Those sources aren't just free money though, but the company can take that influx of cash and spend it on implementing things that do make money. And these money-making strategies have to be far more aggressive because not only does the company now need to make enough to keep everything running and their employees paid, but it also needs to make extra on top of that so that investors can see a return.