Dropbox Shares Offered at 34% Discount in Secondary Market
1–10 of 46 posts
Re: Dropbox Shares Offered at 34% Discount in Secondary Market
#2max short once this goes public
Re: Dropbox Shares Offered at 34% Discount in Secondary Market
#3The last raise was two years ago, so if you figure the current valuation based on recent markdowns, then this price is more inline with what you might expect from common equity vs. preferred.
I am curious, will these secondary shares have the same lockup restrictions that employees face after the IPO?
I am also curious how the market will price Box vs. Dropbox. I would expect them to mostly move in tandem, but with Thiel propagating his "myth of the monopoly", maybe people will consider any positive developments at one to be negative for the other?
At any rate, I expect it will be rough roads ahead.
Re: Dropbox Shares Offered at 34% Discount in Secondary Market
#4Buzzfeed is reporting stock offerings?
Who knew?
Re: Dropbox Shares Offered at 34% Discount in Secondary Market
#5[deleted]
Re: Dropbox Shares Offered at 34% Discount in Secondary Market
#6[deleted]
Re: Dropbox Shares Offered at 34% Discount in Secondary Market
#7Buzzfeed is reporting stock offerings? Who knew?
Buzzfeed would likely report anything people would click on.
Re: Dropbox Shares Offered at 34% Discount in Secondary Market
#8Buzzfeed is reporting stock offerings? Who knew?
Buzzfeed news is pretty good. You won't believe how they fund serious journalism. #8 will shock you. But seriously, they do seem to have a commitment to producing quality news. [1] for example.
[1] http://www.nytimes.com/2013/10/22/business/media/buzzfeed-hi...
Re: Dropbox Shares Offered at 34% Discount in Secondary Market
#9When the company's raised a ton of money, the common's behind a ton of preferences, and in a time when there's no IPO window in sight, a 34% discount to the preferred doesn't sound particularly terrible or notable to me.
Slow news day, I guess.
Re: Dropbox Shares Offered at 34% Discount in Secondary Market
#10This isn't surprising to me at all. Investors that previously valued the stock at $19 per share likely have a 1X liquidation preference. The employees' shares sold on the secondary market won't have this liquidation preference. So VCs are paying a 34% premium to basically guarantee a 1X return. Makes total sense.