Re:The Deal That Jeff Bezos Got on Basecamp
by richdougherty on Thursday July 27, 2017 @07:47PM
(#14870800)
I'm not saying this happened here, but taking a stake can also be used to stop your competitors from acquiring a company.
At the very least he got optionality. No matter what road this thing traveled, he had a piece of ownership in its future, up until it had no future. Even then he had a mental stake in the founders, which is no small thing.
I'm a little curious how it would stack up vs an index or Amazon stock.
Re:The Deal That Jeff Bezos Got on Basecamp
by durandal1 on Thursday July 27, 2017 @06:59PM
(#14870463)
I wouldn't say no to an investment that is 5x over 11 years.
Re:The Deal That Jeff Bezos Got on Basecamp
by tlarkworthy on Thursday July 27, 2017 @07:11PM
(#14870562)
It's not 5x though, it's more coz Jeff still has the ownership AND he has seen 5x cash back.
Re:The Deal That Jeff Bezos Got on Basecamp
by skinnymuch on Saturday July 29, 2017 @12:34AM
(#14879504)
It's decent at 15%+ annual yield. But Basecamp has likely gone 5x up or more since in value as well. Highrise has gotten a boost since they semi spun it off with Nathan Kontny as the CEO.
Doesn't sound like a profitable exit via acquisition, and while it may have turned out to be an income/value sort of thing... it probably didn't look like that then.
I also wonder that if he knew then what he can know now, if he would have made the same investment.