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So any explanation on what a company with a $45B valuation needs an investment of $1.1B for?
by pearjuice 12y ago
So any explanation on what a company with a $45B valuation needs an investment of $1.1B for?
- waihtis 12y agovaluations are based on future incomes.
- repsilat 12y agoThey make smartphones -- they're a hardware company. The money will probably help them ramp up production and increase advertising presence. The valuation implies that they're profitable, but it takes time for profitability to turn into cash in hand. Raising this money (an action pretty similar to taking out a loan) will let them strike while the iron is hot.
- justaman 12y agoIt appears their margins are razor thin. http://www.forbes.com/sites/parmyolson/2014/12/15/xiaomi-profit-margins-samsung-china/ http://www.forbes.com/sites/parmyolson/2014/12/15/xiaomi-pro...
- tiatia 12y ago"They make smartphones -- they're a hardware company." Actually, they don't make smartphones. They design and sell smartphones.
- mc808 12y agoValuation is descriptive, not really relevant to how much they need or raise. If you can raise $1 by selling 0.00000000222% of your company, then the company has a $45 billion valuation for the time being (if I counted 0s correctly).
- spacefight 12y agoMarketing. Buying IP to protect future growth.