Usually when company A acquires company B in a stock

Question

Usually when company A acquires company B in a stock

deal, there's a base equity payout / conversion, but then there's typically performance-based compensation on top of that. Why wouldn't we just do the same thing where the base conversion is a ratio derived from the 6-month trailing FPIS : FXS market price from pre-proposal (8:1 or whatever), and then, over the next 4 years, that ratio increases as a function of FPI-specific revenue? That way, the value of the FPIS is still a function of the value of FPI, and FXS holders are only diluted to the extent that FPI is adding value to the Frax ecosystem. Isn't that truly the most fair way to do it (at the cost of added complexity for implementation)?

#cryptocurrency #english #frax

0

22.03.2024

9 ответов

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Jefe ElJefe

That’s a pretty good idea but much more complicated

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1 месяц назад

Jack

Kones
Companies that get bought in the stock market usua...

A small premium is fine But the premium is normally non existent when buying a corny owned by the same executive team because of the appearances of insider dealing No matter what number is said here though it's going to be rough Trading activity recently shows a lot of people have hedged bets now expecting the team to do this swap so going for 8 fpis to 1 fxs will anger a bigger group than before

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1 месяц назад

Jefe ElJefe

Jack
A small premium is fine But the premium is normal...

This is tesla buying solar city? Tesla bought solar city at a huge premium weeks before it went bankrupt. Who owned most of solar city? Elon musk. Did anyone really care in the end?

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1 месяц назад

Jack

Jefe ElJefe
This is tesla buying solar city? Tesla bought sola...

Yeah I guess that's one example. Elon had to pay million in legal fees to save his billions but the directors and company still lost the lawsuit that dragged on and on

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1 месяц назад

Jack

Jefe ElJefe
This is tesla buying solar city? Tesla bought sola...

It's not like this stuff doesn't happen He did that to save his brother from being bankrupt and everyone knows it was a shitty deal for shareholders At least in the case of Tesla the company was doing well but other share prices have fared far worse in these types of cases

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1 месяц назад

Bueno Pues

Jack
It's not like this stuff doesn't happen He did th...

Bigger company paying a premium to ingest the smaller company is very common. These same conversations happened after the first proposal.

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1 месяц назад

Jack

Bueno Pues
Bigger company paying a premium to ingest the smal...

Yes a 10-50% premium is normal A 800% premium is not normal, irrespective of a 4 year lockup

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1 месяц назад