Gust

article thumbnail

Keep It Under Your Hat: Valuation Caps and the $650 Million Sale of MySpace for $125 Million

Gust

Never missing an opportunity for a good war story, I’d like to revisit one high-profile transaction, the $650 million acquisition of MySpace by Fox Interactive Media in 2005, on which I spent many sleepless nights along with the rest of the deal team. Read on for a fuller explanation. Intermix and its advisors weren’t fools.

article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part IV

Gust

For convertible notes, the only liquidity event we need be concerned with is an acquisition of the startup in the near future, before the maturity date; otherwise, the notes will convert to equity of one kind or another, and the eventual sale of that equity (in a public offering, acquisition, or private sale) is a different subject for another day.

Finance 79
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The right investors for the right stage

Gust

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. At this stage, you need investment bankers to negotiate a merger or acquisition (M&A), go private, or help you go public with an Initial Public Offering (IPO). Growth stage.

article thumbnail

Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

In the case of an acquisition, the shares are tendered for cash and/or stock in the acquiring company.). Ordinarily, every share of Common Stock in a public company is identical, carrying one vote per share on matters put to any vote of stockholders.

IPO 159