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Square Prices Its IPO at $9, giving it a $2.7B valuation

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Re: Square Prices Its IPO at $9, giving it a $2.7B valuation

#41

Earlier quoted context omitted.

Doesn't it make more sense to type it as it's read?

"$" is a modifier, not a word. Otherwise you'd be reading it as "9 dollar sign", not "9 dollars".

Calling it a "modifier" implies that it's something more than a convention. Currency symbols are formatted differently in different countries, according to custom.

Re: Square Prices Its IPO at $9, giving it a $2.7B valuation

#43

Earlier quoted context omitted.

Doesn't it make more sense to type it as it's read?

"$" is a modifier, not a word. Otherwise you'd be reading it as "9 dollar sign", not "9 dollars".

Just like we pronounce 9¢ "9 cent sign" right?

Re: Square Prices Its IPO at $9, giving it a $2.7B valuation

#44
post #18

According to crunchbase, they raised money at a $3.25B valuation in 2012. If they are IPOing at $2.66B now, that means a lot of stock options granted in-between are going to be worthless, unless they were granted at some very different price...

Yes, Square's private per share prices: Series A: $0.21627 Series B: Series C: $5.79817 Series D: $11.014 Series E: $15.46345 IPO @ $9 is not great for lots of folks, but mostly late-stage employees (assuming D & E investors have a liquidation preference - though I don't know for sure).

Just went through an IPO and we had a stock split to bring the price down to a number around $14. Square could also be doing a split so that $9 doesn't mean D & E are getting screwed.

Re: Square Prices Its IPO at $9, giving it a $2.7B valuation

#45
post #18

Earlier quoted context omitted.

Yes, Square's private per share prices: Series A: $0.21627 Series B: Series C: $5.79817 Series D: $11.014 Series E: $15.46345 IPO @ $9 is not great for lots of folks, but mostly late-stage employees (assuming D & E investors have a liquidation preference - though I don't know for sure).

Just went through an IPO and we had a stock split to bring the price down to a number around $14. Square could also be doing a split so that $9 doesn't mean D & E are getting screwed.

a stock split doesn't account for the lower total evaluation.

Re: Square Prices Its IPO at $9, giving it a $2.7B valuation

#46

According to crunchbase, they raised money at a $3.25B valuation in 2012. If they are IPOing at $2.66B now, that means a lot of stock options granted in-between are going to be worthless, unless they were granted at some very different price...

They'd be smart to hand out some heavy cash bonuses to employees that have been dreaming about $20 per share for years.

Re: Square Prices Its IPO at $9, giving it a $2.7B valuation

#47

According to crunchbase, they raised money at a $3.25B valuation in 2012. If they are IPOing at $2.66B now, that means a lot of stock options granted in-between are going to be worthless, unless they were granted at some very different price...

The stock options priced is based on the 409a valuation, not on what investors paid in the last round, so they might not be worthless.

Re: Square Prices Its IPO at $9, giving it a $2.7B valuation

#48
post #46

According to crunchbase, they raised money at a $3.25B valuation in 2012. If they are IPOing at $2.66B now, that means a lot of stock options granted in-between are going to be worthless, unless they were granted at some very different price...

They'd be smart to hand out some heavy cash bonuses to employees that have been dreaming about $20 per share for years.

Why? The investors get an exit, Jack can cash in his shares, and the general public can inherit the rest. In the near term there will probably be layoffs, as soon as Wall Street realizes that the company had no real direction or traction that can support a multi billion dollar valuation.

Re: Square Prices Its IPO at $9, giving it a $2.7B valuation

#49
post #18

Earlier quoted context omitted.

Yes, Square's private per share prices: Series A: $0.21627 Series B: Series C: $5.79817 Series D: $11.014 Series E: $15.46345 IPO @ $9 is not great for lots of folks, but mostly late-stage employees (assuming D & E investors have a liquidation preference - though I don't know for sure).

Just went through an IPO and we had a stock split to bring the price down to a number around $14. Square could also be doing a split so that $9 doesn't mean D & E are getting screwed.

That's not how stock splits work. You can't somehow subvert a falling valuation just by creating more shares.

Re: Square Prices Its IPO at $9, giving it a $2.7B valuation

#50
post #14

Earlier quoted context omitted.

In my experience incentive stock options that companies give to employees normally are heavily discounted.

That, plus they've probably been granting RSUs for a while, which do not require being exercised and which cannot be underwater,

While they cannot be underwater, they were granted with a target comp in mind and a low enough IPO can put people well below the targeted value.
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