Anon Loves His Private Companies
Posted by Puzzled-Macaron6984@reddit | greentext | View on Reddit | 51 comments
Posted by Puzzled-Macaron6984@reddit | greentext | View on Reddit | 51 comments
79792348978@reddit
Because the owners become zillionaires when you go public
jbot1997@reddit
Gabe newell is one of the richest people in the United States at a net worth of 9.5 billion. He has a private fleet of yachts that are estimated to be worth about a billion.
ArkaneArtificer@reddit
The man DESERVES his yachts
Got2Bfree@reddit
Nobody, not even Jesus himself deserves a fleet of yachts or more than 1 billion $ while there are people out there who starve to death or which are homeless.
Just because you like his product, it doesn't make hoarding wealth any less selfish.
I_Don-t_Care@reddit
Just go and earn yourself a few billion as well, its as easy as hoarding amirite??
Got2Bfree@reddit
Where did I say that it's easy?
Getting rich without inheriting always involves a lot of luck.
You completely missed my point.
With 1 billion you still have more money than you can reasonably spend in a lifetime.
Why do you defend having more. Fair sharing of resources benefits everyone besides the mega rich...
You sound like a simp.
Medical-Ad1686@reddit
He didn't earn it. He just steals his employees labor 🤡
clotifoth@reddit
Look I get it "eat the rich" or w/e but there are worse people who did worse stuff to get their money, you dig?
Why do people come up with "fuck Valve" when
EA is sitting RIGHT there and they haven't stopped doing bad since 2012
clotifoth@reddit
if their company was worth a damn and made money they were already zillionaires
plenty of privately held companies are like this and continually choose not to go public
what are the owners' priorities and does the business plan involve going public in some way to achieve funding
Sinfere@reddit
Lots of companies go public because that's how the venture capitalists that helped it scale up make their money. If your biggest investor will only invest on the condition that you eventually go public, it makes sense because it's the only way your company can exist in the first place.
But also, why would I ever want to run a company for maybe 20 years and deal with all the crap when I could just sell out after 5 and be set for life?
clotifoth@reddit
your priorities favor quickly selling out
that's why
you'd never try to start and run a company that's planning to run perpetually privately because you prioritize quickly selling out
if that sounds bad or mean... I mean, you said it yourself, "sell out"...
HatsuneM1ku@reddit
I mean, the entire political and economical climate is fuck you I got mine. I'd sell out to be set for life to lmao
Sinfere@reddit
I mean, you asked why someone would do it, I provided a reason lol
Cadoan@reddit
Money, it's always money. Massive short-term gains. And then service suffers because you cut to increase shareholder value. Customers can hang if you need that extra .25% to make projections. You can make 400mil profit, but ((they)) think you should have made 425mil, stock prices go down.
It a joke.
shre3293@reddit
privately held ones are with old money. so most of the new companies need to go public to keep that cash cow going and for early Investors who want an out.
clotifoth@reddit
it seems to me that privately held companies tend to be older, but the ones that stand out are the ones with demonstrated longevity like White Castle
ElectroMagnetsYo@reddit
Well yeah exactly, make a shit company and spray paint it gold to attract venture capitalists, then sell your shares to make a quick buck. Who needs a company worth a damn when you can just rugpull?
the_fresh_cucumber@reddit
Exactly.
If the company is growing and making you tons of money, why share ownership? Usually these IPOs are from companies who can already get traditional financing if they want it.
Public markets are where private equity offloads companies that are no longer growing.
Referat-@reddit
Same reason boomers want housing prices to keep going up, they just care about sell price. Fuck the rest of you
RodjaJP@reddit
valve isnt a good example because they have a money printing (steam) machine, instead we should focus on those companies who are private as well and do great, such as... who?
I_am_Reptoid_King@reddit
Konami?
Unown1997@reddit
Newsmax went up to $270 yesterday after an IPO of $10 lol. Granted it's at like $130 now but that's still a huge increase
thr33beggars@reddit
Maybe I am a company
callmejinji@reddit
companies are considered people by US law. through the law of transitive properly clearly you are also a company. it is known
bdrwr@reddit
Because it's not about maintaining a quality product, it's about smashing the piggy bank and cashing out.
Daddywitchking@reddit
NotRandomseer@reddit
Literally all of the biggest companies in the world are public , you might not like what it does for consumers but the reason is clear.
Electronic_Warning49@reddit
Anon thinks all public companies immediately shoot for maximum growth, which can lead to a decrease of quality and higher prices to ensure a year over year increase of profit to appease investors. Subway's rose and fall and BRCC are a couple good examples that I've been involved with.
Companies like Costco are smarter. They only open enough stores every year to meet that magical percentage increase in stock valuation and wait for next year to do anything else.
Sushi-DM@reddit
Anon learns that rich people don't give a fuck about your life and if you enjoy it
Especially if it means they make more money
Ok_Digger@reddit
Why make more money? Wouldnt a continual sorce of money be better?
MarchyMarshy@reddit
No, because a massive lump sum up front can be translated into immediate wealth as well as continued source of income if diversified.
flingerdu@reddit
And a massive lump sum also usually means that you don’t have to care about running a company anymore.
TomoeKon@reddit
Bird in hand
neoqueto@reddit
Protip: it's not for the good of the company.
Kerboviet_Union@reddit
You give up control, so typically all of the employees with heart and creativity that made a thing work in the first place will be the first out the door.
Look at how poorly the biggest developers have been doing.
Meanwhile the indie studios that are succeeding independently are thriving.
Then check out tencent being very observant, and shifting money towards acquiring failed western titles, and putting more faith in trams to make titles that end users actually get hyped for.
Investors want returns.
TomatoSpecialist6879@reddit
Founders go public with their company to cash out, then fly off to Bahamas to sip martini and fuck gold diggers until they get bored. If you make a company that's valued at billions of dollars that you can never finish spending, only power and sense of achievement is keeping you there. Reminder that Sam Altman was the face of "FUCK BIG TECH I WILL DESTROY THEM" until he became part of them and became way more of a data thief and tracker than any of them were.
Traumatic_Tomato@reddit
The moment you choose to go public is the moment you have to bend over to shareholders for whatever they demand. Since shareholders are just simply people with their own ideas that were never there since the company's inception, the original goals and intentions go astray and people lose faith in the company's brand because its shifting goals and loyalties. Usually it goes from one mission or purpose to crudely "as profitable as possible" and customers leave over time.
GrantDN@reddit
Going public allows others to invest in your product. This usually serves to benefit top-level management mainly and for companies that aren’t already huge, it’s an opportunity to gain value through outside investment.
The flipside is that going public means you now have to answer to shareholders, at times many of whom don’t give a shit about any vision or mission statement, they just want the numbers to go up.
ToumaKazusa1@reddit
Going public doesn't really benefit or hurt management much, ultimate management, even the CEO, are still employees that answer to whoever owns the company.
Their life is probably a bit easier if they just have to answer to one owner, as opposed to answering to a board that will change its mind more frequently, but that's irrelevant because they don't get to decide if a company goes public.
The person who gets to decide that is the owner, and they usually do it because they need money. Either they need it to pay back other investors who gave them money to start, or they just want to cash out and retire early while someone else deals with the headache of running the company.
Meme_Pope@reddit
You go public to cash out at the top
Mister_Sins@reddit
Because they need more money to expand. The reason why some companies failed is pretty much the same reason why struggling businesses/retailers fails.
“If you've got the power to raise prices without losing business to a competitor, you've got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you've got a terrible business.”
Legal-Act-6100@reddit
because you can issue RSUs and pay your employees with a printing press of self issued value
BaconDragon69@reddit
Anon is THIS close to figuring out that shareholders and capitalism are destroying everything he loves
Electronic-Worker-10@reddit
Money
ConfidentInsecurity@reddit
Lego is private as well 🤓
nage_@reddit
because as long as you and your team don't sign an exclusivity deal, you can take the money of everyone buying in, agree to their stupid ideas, let them fail as you profit, then do projects you actually care about with your own funding so you and your actual team get all the profits and all the credit for a genuine success
PanchoxxLocoxx@reddit
Few people can resist the temptation of having money thrown your way in exchange for just saying yes to the people throwing the money.
Letters_to_Dionysus@reddit
$$$ from investments
wutface0001@reddit
answer is - to raise money
Stolen_Sky@reddit
Most companies have to borrow huge sums of money to expand, or even to start up. It's very rare a company can start up and expand quickly just on its initial profits.
Going public, and selling part of itself, is how company can pay down its debts.
Also, the owners of the company usually make a great deal of money in the process.
LesserValkyrie@reddit
Larian staying private is the sole good reason that made Baldur's Gate 3 so good