Hacker News new | ask | show | jobs
by akiselev 3456 days ago
As one of the wealthiest people on Earth, wouldn't he just put up some stock as collateral for a loan? I bet there'd be lots of big banks willing to take the risk that $1.2-1.5 billion of FB stock would still be worth more than the loan in case of default, especially given the loan payments in the meantime and low risk that he'll be unable to repay.

Either way, acquisitions this big have complex financial structures in place that would easily accommodate a payout over several years. The Roche acquisition of Genentech took more than 20 years, although the latter was already public at that time.

2 comments

The Genentech deal wasn't a 20 year structured agreement that was pre-agreed to culminate in a full buyout (Genentech tried to prevent the acquisition and held off Roche for eight months). I don't see how it compares to the example in question; it didn't actually take 20 years to complete, as there was no on-going acquisition process occurring during that time.
i think founders / promoters using stock as collateral also have to tell the regulator ?