Quote:
Originally Posted by slapass
I always wonder what the guys do with the cash. Meebo or Instagram sells and now the owner has a few hundred million after tax. What the hell do you do with that? Do you trust a bank not to fold and fuck you? Do you trust 5 or ten? A brokerage house? How much return can you get on that money? Are you going to buy t bills and get 3%?
Ideally you could put 50% in some SP500 fund and rest in bnds but at 200 million you would be too much of the fund. What if it closes, goes under or defrauds you?
Nice problems to have but i bet it is a bit of a nightmare as it is just so much...
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The Meebo founder will likely get very little from that deal, as they have initial investors who will be taking their cut as well.
Some of those investors will lose money as well, because they bought in to the company when it had a valuation of over $200 million dollars. (It just sold for $100 million).