Private Companies Will Take Money Public Companies Don't Want (opens in new tab)

(bloombergview.com)

32 pointsbrunooo11y ago4 comments

4 comments

4 comments · 2 top-level

rsp198411y ago· 2 in thread

How 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.

PakG111y ago

Many 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.

icebraining11y ago

Well, 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.

brunoooOP11y ago

Matt 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."

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