[femto113]

Valuations based on investments that have liquidation preference are meaningless. It's analogous to me offering to give you $100K to own 1% of your house, but only if am also guaranteed the first $200K out of any sale. In some sense perhaps I just valued your house at $10 million, but in my perspective I just bought in at half-off the actual market value. I can still lose money if the house sells for less than $100K, but I could still be perfectly happy with my investment even if it sold for a 1/50 of the "valuation".

[benj111]

Right, but that liquidation preference would be junior to all other liquidation preferences, and they've already raised over $12bn, its also junior to debt, and they were seeking to raise $6bn as part of this floatation, plus whatever other debt they have. So quite clearly given that liquidation preference is now potentially worthless, they do need to base their valuation on some kind of reality.