Imagine you are a company, like Wiz, that is still growing fast. Sure, your valu... | Hacker News

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freeqaz 48 days ago | parent | context | favorite | on: Google to buy Wiz for $32B

Imagine you are a company, like Wiz, that is still growing fast.

Sure, your valuation could be based on revenue today. But why would you sell if you're "worth" $12bn right now, but you'll be "worth" 32bn in a few years? Why give up the control?

The only way for a company like Google to buy Wiz is to add a premium. Otherwise the company will just say "no".

This literally happened to Figma as well. And there is a history of this with companies like Instagram/WhatsApp.

In retrospect, was it stupid for Facebook to acquire Instagram/WhatsApp for large premiums?

xvector 48 days ago | [–]

The top shareholders might want to cash out and move on to their next venture, thus netting more money

epolanski 48 days ago | [–]

Slightly OT but it kinda triggers me this abuse of company's worth and value words are consistently used instead of priced.

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