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Snow and Buffet
- Thread starter zdreg
- Start date
$110How much did Buffet pay for his shares?
Are you sure?$110
$570 Million Investment By Warren Buffett
Built into the IPO are commitments from Buffett's Berkshire Hathaway (BRKB) and Salesforce Ventures to each buy $250 million of Class A common stock in a private placement. In addition, Berkshire will buy an additional $320 million worth of shares. Those shares will be bought from an unnamed stakeholder in a secondary transaction. That brings Berkshire's total investment to $570 million.
Yeah pretty sure. From the S-1:Are you sure?
$570 Million Investment By Warren Buffett
Built into the IPO are commitments from Buffett's Berkshire Hathaway (BRKB) and Salesforce Ventures to each buy $250 million of Class A common stock in a private placement. In addition, Berkshire will buy an additional $320 million worth of shares. Those shares will be bought from an unnamed stakeholder in a secondary transaction. That brings Berkshire's total investment to $570 million.
Salesforce Ventures LLC and Berkshire Hathaway Inc. will purchase $250 million of our Class A common stock from us in a private placement at a price per share equal to the initial public offering price.
The IPO price settled at $110.
Not sure about the $320MM deal with the "unnamed stakeholder" though. Didn't dig that far. Not sure if those details are in the S-1 or not.
They get around the underwriting fees somehow.What are the advantages of a private placement for each party involved?
Private placement. That doesn't really worry me... it happens. Its like a typical investment when a corp raises additional funds through equity means... but just before this one goes public and it does get around underwriting fees.
The secondary transaction smells pretty bad. This means a principle was eager to dump some shares out of his own stake without waiting for the lockup to expire. And yes, he may well have sold them for less than $110. Buffet bought quite a bit of these. And yes, he can sell these at anytime.
The secondary transaction smells pretty bad. This means a principle was eager to dump some shares out of his own stake without waiting for the lockup to expire. And yes, he may well have sold them for less than $110. Buffet bought quite a bit of these. And yes, he can sell these at anytime.
The company was not for sale. Only 10% of the co. was sold in the IPO.Why didn't buffett just buy the whole company with his cash. Then there won't be a need for IPO