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A comment on Rivian valued at over $100B after biggest IPO of 2021. Parent comment
"Scaringe will hold all outstanding Class B common shares after the IPO and get 10 votes per share,"
The new normal (see Google, Facebook, Zynga, etc). You can own 6% of the company but retain full control.
You get to have your cake and eat it too if you are a founder.
As an investor in these modern Class A "shares" you are just playing the game of musical chairs.
Where is the fundamental value in Class A ?
It used to be that if you did not care for control, you either bought bonds or preferred shares.
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"Scaringe will hold all outstanding Class B common shares after the IPO and get 10 votes per share,"
The new normal (see Google, Facebook, Zynga, etc). You can own 6% of the company but retain full control.
You get to have your cake and eat it too if you are a founder.
As an investor in these modern Class A "shares" you are just playing the game of musical chairs.
Where is the fundamental value in Class A ?
It used to be that if you did not care for control, you either bought bonds or preferred shares.