> Softbank are looking to buy shares at this lower valuation since they are a different class of share to what they would get otherwise; these are common stock (employees will be a major source of stock for the sale)
They are different, but not that different. Also, Softbank are purchasing both common and earlier preferred as part of their tender. All at the same price. Someone tendering their Series F or G preferred stock would sell at a lower price than what they paid (in the case of the latter, over 30% less). The tender is at a discount. It is a down round.
The $1bn at $69bn is simply a cute ploy investors are pulling to avoid having to mark down a big investment.
Disclaimer: I am not a lawyer. This is not legal nor securities advice. Do not buy or sell anything based on this Internet comment.
"Round" is a colloquialism. It just means a financing. (Private equity "rounds", for instance, regularly contain dividend recap and other non-company benefiting components.) This financing was structured specifically to make its nature ambiguous. Debating what to call it is, by design, tedious.
They are different, but not that different. Also, Softbank are purchasing both common and earlier preferred as part of their tender. All at the same price. Someone tendering their Series F or G preferred stock would sell at a lower price than what they paid (in the case of the latter, over 30% less). The tender is at a discount. It is a down round.
The $1bn at $69bn is simply a cute ploy investors are pulling to avoid having to mark down a big investment.
Disclaimer: I am not a lawyer. This is not legal nor securities advice. Do not buy or sell anything based on this Internet comment.