Re:OpenAI Deal Lets Employees Sell Shares at $86B Valuation
by toomuchtodo on Monday February 19, 2024 @10:28PM
(#39437741)
What are your thoughts when transactions at open markets aren’t clearing above the tender offer price?
Re:OpenAI Deal Lets Employees Sell Shares at $86B Valuation
by JumpCrisscross on Tuesday February 20, 2024 @02:29PM
(#39445735)
> What are your thoughts when transactions at open markets aren’t clearing above the tender offer price?
It signals a dysfunction. If before, information asymmetry. This, fortunately, corrected quickly. If during or after, company prospects may have changed since the tender was announced, or the company is restricting transfers to cronies. The latter is quite common, and a major profit centre for growth capital VCs.
Re:OpenAI Deal Lets Employees Sell Shares at $86B Valuation
by toomuchtodo on Tuesday February 20, 2024 @05:17PM
(#39447734)
Appreciate it.
Fees on tenders are much higher than in open-market trades, they’re just baked into the buy side. The handshake deal management does with tenders is underpricing the offering so managers can add fees on top. Where open-market transactions happen alongside tenders, at least on the institutional side, it’s not uncommon to see 20%+ premiums.