101–110 of 414 posts
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You have to pay enough to convince everyone to sell. The trading price is the marginal price of buying one more unit of stock, not a representation of the stock price at which every owner will sell.
That explains why there's a premium but not why the premium is ~30%.
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Something is really wrong in this market when even a "successful" company like Squarespace deson't manage to be a profitable business.
If you look at the past 10 years (or more) this has been the case with nearly every single poster child of successful US tech company. Look at YCombinator's top/most darling startups. Hardly any of them are profitable or sustainably profitable
This makes the Google registrar change even worse. I need to get my act together and transfer my .dev domain. :/
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The other replies explain the 30% with circular reasoning and I don’t find them convincing, so here’s a more absolute and testable hypothesis: at the average rate of S&P500 return adjusted for inflation, 30% is about 3-5 years of investment. What if that’s the average period of investment (i.e. time between buy and sell) for a typical retail investor for any given stock? If that’s the case, 30% is the minimum premium…
I thought about that too, but realized that it is double counting the returns. If you look at the Discounted Cash Flow (DCF) method for valuing the company, the current value of the company is already the sum of the discounted cash flows from the future. i.e. the next 3-5 year returns are already priced into the pre 30% hike value.
It must be nice for the founder to pocket $2 billion in cash from selling his company. For users, on the other hand, I'll hardly trust a PE firm with a SaaS product. There's just too much incentive to jack up prices to service the debt taken to acquire Squarespace, and cut costs on customer support and building new features.
It's true that PE firms cannot be trusted with a SaaS product. It is also true that most SaaS companies are not profitable for the service they provide at the revenue they derive. This reset, which we will see a lot of since the entire SaaS category has to be re-priced, is the scalable way to clean up companies (why are SaaS employees paid so much?, why are customers paying so little etc..) and put them on a sustaina…
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As much as I'd like to see a web 1.0 revival, this won't happen. The traffic is controlled by Google and social networks. Most people don't have the skills needed to run their own website. A lot of valuable content is created by people without these sorts of skills.
That's a function of technology. It would absolutely be possible to integrate something like Nextcloud into operating systems or devices. It will never happen, because every party in a position to do such an integration is also in a position to become a middleman and extract money, which is much more profitable.
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> As of December 31, 2021, the Reporting Person’s beneficial ownership consists of: (i) 387,500 shares of Class A Common Stock and 2,050,838 shares of Class B common stock, $0.0001 par value per share (“Class B Common Stock”) held directly by the Anthony Casalena 2019 Family Trust, for which the Reporting Person is the trustee, and > (ii) 4,930,175 shares of Class A Common Stock and 40,835,572 shares of Class B Commo…
Thanks, I assumed all holdings would have been reported on Form 3 and 4 under the beneficially owned section.
It is interesting how most M&A transactions trend to have a 30% premium above the trading price. I have tried to investigate why but could not find a good explanation to why this number is so prevalent.
There is a baseline trading volume that still expects to have access to the stock. As you buy more stock, less stock is available to buy, driving up the price.
This makes the Google registrar change even worse. I need to get my act together and transfer my .dev domain. :/
That being said, the second Permira increases the prices of a single domain name I own, I'm moving my domains to somewhere else.
how odd, all my google domains just transferred to squarespace today. now thru no consent of my own all my domain and payment information are belong to this private equity shop i dont know anything about that is also likely to strip it for parts. idk how to feel about that
It was announced in mid-2023, and google sent out numerous emails to account holders over the last six months. https://support.google.com/domains/answer/13689670?hl=en Feel free to migrate your domains somewhere else. I chose CloudFlare