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Uber's valuation is an advertisement. If they try to use most of that $50 billion, they'll run into a restriction of some kind, and have to pay it back. The inv
by stephengillie 11y ago
Uber's valuation is an advertisement. If they try to use most of that $50 billion, they'll run into a restriction of some kind, and have to pay it back. The investor will get their $50 billion back, in one way or another.
Their actual valuation is much lower. Announcing this big number does the advertising for them, the recruiting for them, and it even writes the press release for them.
It's amazing what a very large amount of money can buy. You don't even have to spend it.
- adventured 11y agoWhat $50 billion would the investor be getting back? Nobody is or has invested $50 billion into Uber. And no investor will be getting their money back due to 'restrictions of some kind.' That is not legally how investing works, not even remotely close. The investors own part of Uber, they are the ones committed to Uber's business model (which they bought into). They are assuming risk like any other investment. If Uber fails, they'll liquidate the skeleton that remains, and get pennies on the dollar (if they're lucky), there isn't going to be billions sitting in a bank account waiting to be recovered.
- stephengillie 11y agoOkay, so there is no $50 billion. It's entirely advertisement, entirely fake. It still streamlines recruiting, business operations, and press releases.