Re:Airbnb raises $1B at $31B valuation, became profitable in...
by bfwi on Thursday March 09, 2017 @01:38PM
(#13831729)
If you're a profitable private company, aren't you legit?
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Re:Airbnb raises $1B at $31B valuation, became profitable in...
by zenlikethat on Thursday March 09, 2017 @02:00PM
(#13831974)
In some sense, yes, but check out Sarbanes-Oxley: https://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Act. Public companies are under much more scrutiny in terms of compliance, and they have a certain type of pressure to post good quarterly results that private companies don't.
Re:Airbnb raises $1B at $31B valuation, became profitable in...
by csturtevant on Thursday March 09, 2017 @02:09PM
(#13832096)
What is the incentive to go public in today's environment other than an initial fundraising, and an unpredictable monetary bonus for employees?
Edit: Appended another question.
Re:Airbnb raises $1B at $31B valuation, became profitable in...
by harryh on Thursday March 09, 2017 @02:26PM
(#13832385)
That is how most investors cash out and turn a theoretical return into an actual one.
It also makes the value of your corporate equity much clearer which can enable acquisitions.
Re:Airbnb raises $1B at $31B valuation, became profitable in...
by jimmywanger on Thursday March 09, 2017 @04:23PM
(#13833830)
Depends. I think with the increased scrutiny as a public company, you have much less wiggle room for creative accounting tricks.