Illiquidity and Bubbles in Private Share Markets: Testing Mark Cuban's thesis!
aswathdamodaran.substack.com
It looks like Alibaba is investing $200 million in Snapchat, translating (at least according to deal watchers) into a value of $15 billion for Snapchat, a mind-boggling number for a company that has been struggling to find ways to convert its popularity with some users (like my daughter) into revenues. While we can debate whether extrapolating from a small VC investment to a total value for a company make sense, there are two trends that are incontestable. The first is that
Illiquidity and Bubbles in Private Share Markets: Testing Mark Cuban's thesis!
Illiquidity and Bubbles in Private Share…
Illiquidity and Bubbles in Private Share Markets: Testing Mark Cuban's thesis!
It looks like Alibaba is investing $200 million in Snapchat, translating (at least according to deal watchers) into a value of $15 billion for Snapchat, a mind-boggling number for a company that has been struggling to find ways to convert its popularity with some users (like my daughter) into revenues. While we can debate whether extrapolating from a small VC investment to a total value for a company make sense, there are two trends that are incontestable. The first is that