David Rosenthal: belief

Transcript context

…Yeah. I mean, the thing I'm sitting here wondering is, do they have to go out now? Could they have continued to fund their operations by what they had in the bank, raising more private money? Is it advantageous for them to go out? I would love to hear your thoughts on that. They had no choice. I mean, they were burning money. Where did I put the… I had the numbers in my notes. I don’t have them offhand but I think Snap had even after the huge amount of money they just raised in the private markets like less than a year ago, they had just about a billion dollars in cash on-hand and they burned free cashflow of almost I believe $700 million last year. That’s I'm sure going to be even larger this year. So like they were going to be out of cash if they didn’t get this capital infusion, one. But two, also, I think like we’ve talked about, like this was their opportunity and this was the time for them to tell their story. Yup. I guess the name of the section is “What Would Have Happened Otherwise?” So we have to sort of explore other options. Could they have been acquired and who would have acquired them at this point? They’re 10 times more valuable than the last time Facebook tried to acquire them. But I mean, for what they dumped on WhatsApp, let’s say it’s the standard public market to 40% premium. I think, what was it, they went out at a $24 billion market cap. So, what, like 33, 34, 35, would Facebook have paid that much for them and will they have accepted it?…

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