News for hackers. Stuff that matters.

A comment on Options vs. Cash. Parent comment

Re:Options vs. Cash by adamlett on Wednesday June 07, 2017 @02:37PM (#14508776)
No. What someone is willing to pay and what something intrinsically is worth is not the same thing. If the stated presumption is that the company was worth $400M before the $100M cash infusion, then it follows that it must be worth $500M after that.
[ Parent | on HN ]
Re:Options vs. Cash by sokoloff on Wednesday June 07, 2017 @08:59PM (#14511111)
Yes, but the original problem statement was flawed (over constrained and confictingly constrained).

It was "pre-money $400M", "new investment $100M", "new investment gets 25%". Those can't all be held true.

You can change exactly one of them to remove the conflict, so it's either "pre money $300M", "new investment $133.33M", or "new investment gets 20%"

[ Parent | on HN ]