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A comment on WeWork Parent Weighs Slashing Its Valuation in Half. Parent comment

Re:WeWork Parent Weighs Slashing Its Valuation in Half by konschubert on Thursday September 05, 2019 @06:17PM (#20891141)
> Buying secondary shares at X, making a tiny investment at 2X, and then claiming the company is worth 2X.

It should be possible to figure out the formula for how much an investor needs to invest in a given round, given a previous investment into the company, such that the downside of investing at an increased valuation exceeds the upside of the existing shares being valued higher than before.

In other words: How much would SoftBank need to invest such that it wouldn’t benefit from bluffing on the valuation?

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Re:WeWork Parent Weighs Slashing Its Valuation in Half by pmart123 on Thursday September 05, 2019 @07:36PM (#20891620)
I believe it would depend on the liquidation preferences and the preferred stack. This would allow them to potentially own most of the company in the event it was acquired for a worse valuation, went bankrupt, etc.
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