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Does that scale into the billions, though?
by kzhahou 11y ago
Does that scale into the billions, though?
- shiven 11y agoApparently, it just did.
- 001sky 11y agoConsider it like FB buying instagram. Company is playing around with a small amount of equity as a % of total value. Having some liquidity in the bank for a rainy day is a good thing in a bubble. As is investing it in a way that will increase an eventual IPO value. So in either the upside or the downside here they have options to use the money that likely will move the needle on valuation.
- pbreit 11y agoAbsolutely. Once you raise, you're practically praying for the economy to tank. All of your poorly funded competitors go away and everything gets way cheaper (primarily, labor).
- mcintyre1994 11y agoDoes this hold if you're selling a luxury good like holidays?
- pbreit 11y agoI'm sure there are exceptions but very few. And not that one. A well-capitalized player could go a long way towards sewing up the entire market.