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Private Companies Will Take Money Public Companies Don't Want
- brunooo 12y agoMatt Levine with one of the most clever lines (as often) regarding the changing valuation dynamics: "The public stock markets are increasingly about capital return rather than capital raising."
- rsp1984 12y agoHow about the public companies themselves (rather than investors) put the money into private companies in related sectors, via M&A or venture arms? This certainly paid off for Yahoo when it bought a chunk of Alibaba. Not sure it's wise to put the money back into investors hands where there's less domain knowledge than in the companies the money came from.
- icebraining 12y agoWell, the money that went to those companies originally came from those investors, so I'm not sure why would we assume those investors are less knowledgeable.
- PakG1 12y agoMany companies do this already though? It's difficult for me to think of a well-known public company that doesn't do this. If the public company is worth only a single digit billion dollar value or lower, then OK. But if it's worth more, especially triple digit billions, I think they generally all do this already.