311–320 of 414 posts
Earlier quoted context omitted.
I'm not really sure I follow this logic. What connection are you drawing between PE and Web 3.0? People like to hate on PE, it's just negativity bias. Most people don't hear about all of the PE success stories. If PE just ruined companies as a matter of fact, it would not be a good business...and it's an objectively good business to be.
People hate on PE for good reason - they often make money by destroying good businesses. They sell off the valuable parts for profit, load the debts on what is left, and declare bankruptcy, leaving employees and customers holding the bag. PE is good business for the raiders, bad business for the raided.
And when they part one out like you are referencing, it’s usually a bad business. While what Eddie Lampert did to Sears/K-Mart was criminal, or at least should be, they were not a good business and hadn’t been in a very long time.
A good business is rarely worth more parted out than whole. It’s most often good business for the “raided” too because they are failing and the alternative is bankruptcy. A company that survives after laying off 25% of its staff still employs more people than one that dies entirely.
This is why they prefer companies with high revenue and low profits. That’s nearly always the sign of a business that has been mismanaged and can be fixed.
I have come to the conclusion that people in tech are as largely ignorant of finance as people in finance are of tech.
The gold rush is over - private equity is going to squeeze every little drop from the companies that have been built and we will move on to Web 3.0 - which will be just like web 1.0 - self-hosting, link directories, newsletters, and guestbooks.
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.
> 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.
Maybe Web 1.0 won't return as the "dominant culture," but I wonder if something like it could return as a subculture.
> 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.
Maybe we just need an new MS Frontpage for the new millennium?
Earlier quoted context omitted.
I'm not really sure I follow this logic. What connection are you drawing between PE and Web 3.0? People like to hate on PE, it's just negativity bias. Most people don't hear about all of the PE success stories. If PE just ruined companies as a matter of fact, it would not be a good business...and it's an objectively good business to be.
That's not entirely accurate. The easy way to make a crazy amount of money is to buy a well-credited company, sell / mortgage anything of value, ramp up user fees and debt over a short period (3-5 years), and then cast aside the husk via bankruptcy.
If this is a thing that they all do all the time and the creditors always lose, how do the creditors not learn?
Or is it possible that that’s just a story based on events that happened a few times and were extrapolated to be believed to be the norm?
Earlier quoted context omitted.
> why this number is so prevalent It comes from a 2004 Delaware court case, which found “recent appraisal cases that correct the valuation for a minority discount by adding back a premium ‘that spreads the value of control over all shares equally’ consistently use a 30% adjustment” for the control premium [1]. (Under Delaware law, shareholders are entitled to the pro rata share of a company’s fair value. The courts c…
Can you ELI5 this?
Companies have big shareholders and small. Absent controls, the big shareholders (and management) have an incentive to negotiate deals that are better for them than for the small shareholders. Delaware is good at designing these controls, which is why savvy investors like companies to be based there.
One of these controls allows shareholders to sue if they think the company they own stock in was sold too cheaply. In those cases, the court will step in to check the math. That happened in Doft.
Most of the case revolved around comparing Travelocity’s value to Expedia’s. But buying a share in Expedia is different from buying all of Travelocity, because the latter lets you e.g. pay yourself—the owner—all the money in the bank account as compensation or unilaterally sack management. The value of this privilege is called the control premium. After the court valued Travelocity conventionally, it added a control premium of 30% to come up with the final enterprise value.
Why 30%? Because that’s what most valuation consultants did. What Doft changed was now that convention was cited in case law. So a shareholder who is upset about their shares being sold at a 15% premium can credibly threaten to sue and win, which companies want to avoid, and so we get this circular convention of a 30% control premium (loosely defined) being the norm for converting companies from widely-held (usually public) to narrowly-held (usually private).
In other words, it's a great time to build the next Squarespace.
Earlier quoted context omitted.
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.
>> The gold rush is over - private equity is going to squeeze every little drop from the companies that have been built and we will move on to Web 3.0 - which will be just like web 1.0 - self-hosting, link directories, newsletters, and guestbooks. > 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. Maybe Web 1.0 won't return as the "dominant cu…
With so many static site generators, I wonder how hard it’d be. Not that it’s simple, just thinking that an opinionated structure, a gui, and gluing it all together.
Earlier quoted context omitted.
I just launched a site on Squarespace - $25 a month for a basic landing page.
That seems about right? I use Netlify to deploy my own 11ty static site, and it costs $19/month, plus there's no WYSIWYG editor like Squarespace.
Also - there's a bunch of integrations with their other stuff (serverless, D1, etc.) You'll get more lock-in, but you can scale up the static site to become basically a full frontend-backend app from there.