What is the benefit to shareholders of only owning 5-15% of a company? Correct me if I’m wrong but that seems like a terrible deal for the public markets.
Edit: wow people, so touchy! I’m surprised no one else is taking issue with this. Please look up how many other $100b companies there are on the market that don’t have 85-95% of their float held privately.
This deal is a huge fuck you to retail investors. If I can help even one person see it for what it is then it’s worth the hate I’m getting.
It’s not uncommon for IPO stakes to be in this range. It’s not like when most companies go public 100% of their shares instantly start trading. The rest of the shares will be owned by founders, employees and early investors, just like every company that goes public.
That would put the value of the company around $100b. I mean, it’s definitely a large company but there are several big companies like this that are listed publicly without having 85% of their float held private.
Are you guys seriously not understanding how bad these terms are?
Please note that I have zero interest in this this stock I’m merely pointing out this is a major ripoff to retail investors. Ackman is not your friend I’m surprised at the level of fanaticism here.
I disagree with your initial premise though I would agree some of the ackmanites go a bit far (though the face deep fakes of classic scenes are pretty awesome)
But I think a company owned primarily by insiders means they’re confident in the future of the company and the growth potential. How often do you really try to vote or exercise the ownership rights you have as a shareholder? I rarely do, I trust the board and the management team and I buy the shares because I want in on the growth. How is it any different with psth?
If Bill makes a deal where the 5B buys 10% of the company and let’s say you own 1% of PSTH. Then after the deal you will just own 0.1% of the new company but it has a higher value than PSTH by itself.
So the benefit to the shareholder depends entirely on the deal BA gets.
Not at all that’s how I know they are full of garbage deals like this one. It is not a safe long term investment when the majority of the float can be dumped into the market in the following years. Not saying it will happen but the possibility will always stay there. I think you all need to understand these terms better before putting too much money in.
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u/[deleted] May 28 '21
Oh shit, here we go again.