[dheera]

It's probably a mostly equity deal, i.e. most of the $410M is not real money. They recently raised $600M and I doubt they'd spend $410M of that on an acquisition.

It would be more interesting if we knew how much they actually paid in hard cash; the rest is effectively just promises of money in the form of a valuation that hasn't materialized in liquid form yet.

[ec109685]

The same promises of money that their investors paid money to acquire, so it doesn’t seem right to just dismiss the equity value.

[dheera]

Sure, not dismissing it, but it's not the same value. It's not hard cash that the founders/employees can spend, so it's mostly useless in terms of value for research, charity, self-funding new ventures without VCs, investing in other companies, side projects, or whatever else you would do with hard cash.

If you're an early employee of Caviar and got $1M in AMZN stock or options? You could sell it for cash. DoorDash stock? It could be $0 in a few years for all you know, and you quite possibly have no avenues to liquidate it for anything now.