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Darrow Hill
Vodka and Vice
42
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Posted - 2012.02.22 13:38:00 -
[1] - Quote
Professor Alphane wrote:So there isn't stock now and there will be....
or
there is stock but they wnat to make more because they believe there company is undervalued?
There is "stock" now; privately held, not available on an open market, and not easily sold.
An IPO, typically, offer "common" shares with ownership and voting rights in some form or another.
IPO's have nothing to do with "valuation". It's a fundraising alternative to debt (or, in the case of many companies such as Facebook, Groupon, etc., it offers the current owners / venture capitalists a chance to cash out of their initial investment).
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Darrow Hill
Vodka and Vice
42
|
Posted - 2012.02.22 13:47:00 -
[2] - Quote
Ursula LeGuinn wrote:As for the why of it, an IPO would probably mean more capital for CCP to work with. At the same time, it means less control over who owns shares in the company, and a greater number of shareholders wanting to see their investments grow.
Lets make this as blunt as possible.
66 million in revenue is peanuts.
It really is.
EvE, in itself, is profitable and self sustaining. However EvE is not CCP's only project. If you ever took a look at CCP's basic financials from 2010, it's plainly obvious that the only way CCP can continue to develop Dust 514 and WoD is by using external financing.
They need cash.
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Darrow Hill
Vodka and Vice
42
|
Posted - 2012.02.22 14:03:00 -
[3] - Quote
Vertisce Soritenshi wrote:You don't know this for a fact. Either way, whatever CCP decideds to do financially I hope it has a positive outcome for EvE and DUST.
It's all on the cash flow statement.
With luck, we won't have to wait until July to see the results for 2011.
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Darrow Hill
Vodka and Vice
42
|
Posted - 2012.02.22 15:54:00 -
[4] - Quote
Florestan Bronstein wrote:4 of 6 BoD seats are already in the hand of investors and a VC, that ratio would probably not change substantially post-IPO.
The VC's will likely exit.
VC's are very rarely in the game for the long term. The private equity groups I have worked with in the past have all had 5 year return horizons (get in, grow, get out).
The reality is, once you bring in VC / Private Equity, you have fairly limited options for their exit.
- Shop for a new VC / PEquity partner
- Leveraged buyout by management
- IPO
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