4 ms·
Why sell? After a valuation of $100M it's all just fun and games and a very unique experience that fewer than a 10 people/year or so can have in their lives. Y
by wellboy 13y ago
Why sell? After a valuation of $100M it's all just fun and games and a very unique experience that fewer than a 10 people/year or so can have in their lives.
You can't buy that with money.
- raverbashing 13y agoThe question is, can they get 3B (or more) in another way? If Instagram's 1B was already excessive what's 3B for Snapchat? You're mentioning valuation, but the 100M do not exist. Yes, things have the value they are bought/sold for but selling 10% of something ends up skewing those values. Yes, it's a definitely cool experience. The you can pocket the 3B and go have another fun experience with another company (or even at the same, unless the company is absorbed/shutdown)
- wellboy 13y agoThey do exist. The definition of valuation is the price someone is willing to pay it. Facebook is willing to pay it, investors are willing to pay it. That's the definition of valuation.
- raverbashing 13y agoYes, but here's the thing, for example a 1st round putting the valuation at 100M usually involved a purchase of a % of the company by a % of 100M. Oh yes, if Facebook is willing to pay for it, the price tag today is 3B (and I would definitely go for it because I think it's worth less than that)
- amac 13y ago> Why sell? They need to be profitable one day.
- wellboy 13y agoA good share of companies don't have to. If you look at the recent acquisitions, lots of them hadn't even made one penny of revenue.