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My guess is for these things to change (if they ever do) there would have to be a crisis event. Maybe after the next crash employees will be more reticent to ta
by entee 11y ago
My guess is for these things to change (if they ever do) there would have to be a crisis event. Maybe after the next crash employees will be more reticent to take pure stock and will go for an alternate arrangement. Maybe the structures built for those arrangements will allow contracts for acquisitions to be structured differently.
It's going to be interesting to see how long this private valuation explosion will last and what the fallout will be after it pops.
- mathattack 11y agoA fully private market isn't great either. There's a lot of value for the investment community in general to know what the daily value of a given stock is. If you try to get this transparency via off-market transactions, aren't you just recreating the public market?
- entee 11y agoOh totally. I think it would be a bad thing overall, but that doesn't mean it won't happen. If you have enough capital in a relatively small number of private entities, perhaps they will find it to their advantage to compromise a little on clarity, in exchange for more control or less regulation. Overall, I suspect a shadow market would be a bad thing, but it's hard to argue that for the moment there isn't something like a shadow market in silicon valley. I don't think it's a sustainable one, and it certainly is opaque (what's in those term sheets?), I'm just thinking of whether something similar could exist in a more permanent form.