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Because it sounds like the CEO of OpenAI wants to use investor's money to buy his other company. Too bad we can't short it or otherwise stop it, because invest

Because it sounds like the CEO of OpenAI wants to use investor's money to buy his other company. Too bad we can't short it or otherwise stop it, because investment for the things we could start will dry up once the world figures this out. We're all correlated to companies like FTX whether we like them or not...

jazzyjackson 1y ago
There should be a way to reverse valuate a company based on how much of its stock it used to acquire a company worth (500,000,000 dollars of) peanuts
- deleted 1y ago
  [deleted]
- bravoetch 1y ago
  Depending on who is doing the valuation, I'm sure this is already a consideration. Like when Coinbase acquired Earn for $110m-ish. Was Earn worth that? Absolutely not. Since Coinbase and Earn shared investors, it was merely a convenient way for those investors to pay themselves out of the unexpected billion dollar cash pile Coinbase amassed in 2017.
  - cma 1y ago
    Isn't that a less efficient way than a $110m dividend or buyback?
    - manquer 1y ago
      Dividend means taxes . Buyback requires someone to sell (I.e. exit) usually no one wants[1] to especially when the company is going hot. investors would rather have (more)stock in a hot company than cash. Fund managers and staff have also disincentives for early exits, i.e. they have to find and invest in another company and cannot just keep the money, which means more work. They rather exit by switching stock to a hotter in demand, hard to get in companies if they can. [1] there are always some employees and founders who would prefer some liquidity , but either they don’t hold large enough positions (employees) or investors don’t want to give a lot of liquidity (founders) For public companies it is different- buybacks work because there is always someone ready to sell. Usually retail but also short term funds who don’t care about liquidating. ETFs and other very institutional investors or those into buffet style long term investments will not sell easily
bsimpson 1y ago
Sam and Elon are both ethically dubious power players who seem to be really good at inside dealing to benefit themselves, while all the other people in their companies just have to deal with it. As I write this out, it reminds me of another polarizing leader who has been really good at being in the news every day for the last 6 months, and for a 4 year period a decade ago.
- deleted 1y ago
  [deleted]
yccomments 1y ago
[flagged]
- whatshisface 1y ago
  You're too late for that to be a prediction. https://en.m.wikipedia.org/wiki/World_(blockchain) https://en.m.wikipedia.org/wiki/World_(blockchain)
ergocoder 1y ago
Yeah of course we cannot short a non-public company. If we could, then forget OpenAI. I would short every private company and end up richer than Elon Musk because 99% of the private companies fail. “Wanting to short a private company” is such a weird comeback. Like yeah private companies most likely fail. Everyone knows.

jazzyjackson 1y ago

There should be a way to reverse valuate a company based on how much of its stock it used to acquire a company worth (500,000,000 dollars of) peanuts

deleted 1y ago
[deleted]
bravoetch 1y ago
Depending on who is doing the valuation, I'm sure this is already a consideration. Like when Coinbase acquired Earn for $110m-ish. Was Earn worth that? Absolutely not. Since Coinbase and Earn shared investors, it was merely a convenient way for those investors to pay themselves out of the unexpected billion dollar cash pile Coinbase amassed in 2017.
- cma 1y ago
  Isn't that a less efficient way than a $110m dividend or buyback?
  - manquer 1y ago
    Dividend means taxes . Buyback requires someone to sell (I.e. exit) usually no one wants[1] to especially when the company is going hot. investors would rather have (more)stock in a hot company than cash. Fund managers and staff have also disincentives for early exits, i.e. they have to find and invest in another company and cannot just keep the money, which means more work. They rather exit by switching stock to a hotter in demand, hard to get in companies if they can. [1] there are always some employees and founders who would prefer some liquidity , but either they don’t hold large enough positions (employees) or investors don’t want to give a lot of liquidity (founders) For public companies it is different- buybacks work because there is always someone ready to sell. Usually retail but also short term funds who don’t care about liquidating. ETFs and other very institutional investors or those into buffet style long term investments will not sell easily

bsimpson 1y ago

Sam and Elon are both ethically dubious power players who seem to be really good at inside dealing to benefit themselves, while all the other people in their companies just have to deal with it. As I write this out, it reminds me of another polarizing leader who has been really good at being in the news every day for the last 6 months, and for a 4 year period a decade ago.

deleted 1y ago
[deleted]

yccomments 1y ago

[flagged]

whatshisface 1y ago
You're too late for that to be a prediction. https://en.m.wikipedia.org/wiki/World_(blockchain) https://en.m.wikipedia.org/wiki/World_(blockchain)

ergocoder 1y ago

Yeah of course we cannot short a non-public company. If we could, then forget OpenAI. I would short every private company and end up richer than Elon Musk because 99% of the private companies fail. “Wanting to short a private company” is such a weird comeback. Like yeah private companies most likely fail. Everyone knows.