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by bluGill 2619 days ago
Same problem: none of those funds have several billion sitting around they can access. It would crash the market for all other stocks if he offered everything for 3 billion : At half price there are funds with enough assets to liquidate their other holdings and buy. It would send the market down significantly. There just isn't enough free cash in the world to actually buy him out. (free cash meaning money not already allocated to food and other requirements of daily living)
2 comments

An investment bank could easily find multiple cash buyers for companies of that size who would be willing to pay a premium. They’re like real estate brokers for companies.

As an example, IBM paid $34 billion in cash to buy Red Hat last October, which it paid to Red Hats shareholders. Red Hat was worth $21 billion at the time.

In practice many cash purchases of businesses are funded in part by debt. Companies or investors can borrow money from banks, issue bonds to receive cash, and contribute some of their own cash to out find a cash offer for a company.

He could sell to Berkshire Hathaway, easily.